An industrial engineer has developed a computer simulation model of a two-item inventory system. The decision variables are the order quantity and the reorder point for each item. The response to be minimized is total inventory cost. The simulation model is used to produce the data shown in the following table. Identify the experimental design. Find the path of steepest descent.

 

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Item 1 Item 2 Order Reorder Order Reorder Total Quantity (5) Point () Quantity (6,) Point (E) Cost 100 25 250 40 625 140 45 250 40 670 140 25 300 40 663 140 25 250 80 654 100 45 300 40 648 100 45 250 80 634 100 25 300 80 692 140 45 300 80 686 120 35 275 60 680 120 35 275 60 674 120 35 275 60 681