and storage requirements for each model are summarized in the following table. las, costs, Model 1 Model 2 Model 3 Annual Demand 800 500 $1,100 1,500 Unit Cost $300 $600 Storage Space Req'd 9 sq ft 25 sq ft 16 sq ft It costs $60 to do the administrative work associated with preparing, processing, and receiving orders, and SuperCity assumes a 25% annual carrying cost for all items if holds in inventory. There are 3,000 square feet of total warehouse space available for storing these items, and the store never wants to have more than $45,000 invested in inventory for these items. The manager of this store wants to determine the optimal order quantity for each model of TV a. Formulate an NLP model for this problem. b. Implement your model in a spreadsheet and solve it. c. What are the optimal order quantities? d. How many orders of each type of TV will be placed each year? e. Assuming demand is constant throughout the year, how often should orders be placed? Bonus 18. The Radford hardware store expects to sell 1,500 electric garbage disposal units in the coming year. Demand for this product is fairly stable over the year. It costs $20 to place an order for these units, and the company assumes a 20% annual holding cost on inventory. The following price structure applies to Radford's purchases of this product: Order Quantity 0 to 499 500 to 999 1,000 and up Price per Unit $35 $33 $31 So if Radford orders 135 units, it pays $35 per unit; if it orders 650, it pays $33 per unit; and if it orders 1,200, it pays $31 per unit. a. What is the most economical order quantity and total cost of this solution? (Hint: Solve a separate EOQ problem for each of the order quantity ranges given, and select the solution that yields the lowest total cost.) b. Suppose the discount policy changed so that Radford had to pay $35 for the first 499 units ordered, $33 for the next 500 units ordered, and $31 for any additional units. What is the most economical order quantity, and what is the total cost of this solution? 19. A long-distance telephone company is trying to determine the optimal pricing struc ture for its daytime and evening long-distance calling rates. It estimates the demand for phone lines as follows: Daytime Lines (in 1000s) Demanded per Minute = 600 - 5000Pa + 1000Pe Evening Lines (in 1000s) Demanded per Minute = 400 + 3000Pa - 9500Pe Pa represents the price per minute during the day, and Pe represents the price per minute during the evening. Assume it costs $100 per minute to provide every 1,000 lines in long-distance capacity. The company will have to maintain the maximum