Ohm City Appliances has three types of TVs delivered from Springfield TV. Figure 14 gives the annual demand, unit purchasing cost, annual holding cost (as a percentage of purchase cost), the fixed cost of ordering a product, and the fixed cost of placing an order.

Determine an ordering policy that minimizes the sum of fixed and holding costs.

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FIGURE 14 4 A B C D E F 4567 Product 1 Product 2 Product 3 8 annual demand unit cost 12000 1200 120 $ 500.00 $ 500.00 $500.00 16 9 holding cost 0.2 0.2 0.2 10 product order cost $ 11 eoq 23 24 227667222222222222 12 orders per year 13 14 15 Orders per year P1 overall order cost 1,000.00 $1,000.00 489.8979486 154.9193338 48.989795| 24.49489743 7.745966692 2.4494897 $ 4,000.00 10.46135741 1,000.00 $ 16 Orders of P1 per P2 1 17 Orders of P1 per P3 4 18 Orders per Year P2 10.46135741 19 Orders Per Year P3 2.615339354 20 21 Main annual order cost 28 29 30 31 32 Total Annual cost $ 130,766.97 33 25 Order quantity Avg. Inventory Annual Holding cost 1147.078675 573.5393374 57.35393374 22.941573 $ 57,353.93 $ 5,735.39 $2,294.16 Annual product ordering cost $ 10,461.36 $ 10,461.36 $2,615.34 $ 41,845.43 Prod 1 Prod 2 Prod 3 114.7078675 45.883147