Cj- Si= ¡= B= N= unit cost of item/ cost per order placed for item/ inventory carrying charge as a percentage of the cost per unit the maximum amount of investment in goods number of items In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (D)/Q) is the number of orders) and the last term is the annual inventory holding cost (Q/2 is the average amount of inventory). Set up a spreadsheet model for the following data: Item Item 1 2 2000 2000 Item 3 1.500 Annual Demand Item Cost Order Cost B-$25,000 /= 0.3 Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than O for Solver to find a solution. If required, round your answers to two decimal places. Optimal Solution: $80 $50 $70 $160 $135 $125 Q2= 03- If required, round your answer to the nearest dollar. Total cost = $
Cj- Si= ¡= B= N= unit cost of item/ cost per order placed for item/ inventory carrying charge as a percentage of the cost per unit the maximum amount of investment in goods number of items In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (D)/Q) is the number of orders) and the last term is the annual inventory holding cost (Q/2 is the average amount of inventory). Set up a spreadsheet model for the following data: Item Item 1 2 2000 2000 Item 3 1.500 Annual Demand Item Cost Order Cost B-$25,000 /= 0.3 Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than O for Solver to find a solution. If required, round your answers to two decimal places. Optimal Solution: $80 $50 $70 $160 $135 $125 Q2= 03- If required, round your answer to the nearest dollar. Total cost = $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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