A small shop produces three machines part I,II and III in lots. The shop has only 650m2 of storage space the appropriate data for three items are given in the following table Item I II III Demand (unit per year) 5000 2000 10000 Procurement cost per order 100 200 75 Cost per unit 10 15 5 Floor space requirements 0.7 0.8 0.4 The shop uses an inventory charge of 20% of average inventories valuation per year. If no stock out is allowed, determine the optimal lot size for each item under a given storage constraints.