Annual Demand	Replenishment Cost	Carrying Cost	Investment Budget per Unit stored	Order Quantity	Average Inventory	Maximum Storage Capacity	InvestmentBudget Required	TOTAL COST
	Part	D	S	H	B	EOQ	I
	1	1000	20	1.25	1.5	100	50	100	75	$262.50
	2	1500	20	1.75	2.1	100	50	100	105	$387.50
	3	750	20	2.55	3	100	50	100	150	$277.50
	4	1200	20	1.35	1.6	100	50	100	80	$307.50
	5	1600	20	1.65	2	100	50	100	100	$402.50
	TOTAL							500.00	$510	$1,637.50
							Available	800	1000

03) Sasco purchases and then resells five products. Table on Solver spreadsheet provides information related to annual demand of these products, D, replenishment cost (the cost of placing an order), 5, the carrying cost (the cost for holding one unit in inventory for one year), H, and the additional investment budget (in dollars) one unit takes up in preparing the storage area. Sasco has 650 (monetary units) of investment budget available. It has determined that using the average inventory level of each item provides an accurate estimate of the total budget required when these averages are summed across all five products. 1. Find for each item EOQ without considering the budget limit and compute the total costs and the required budget to enable EOQ. 2. Develop a solver model through macro recording and create a shortcut button to activate the macro. Explain why the total cost was increased when the available budget constraint of 650 was satisfied relative to total cost at EOQ? 3. Determine the total cost if the company has 1000 instead of 650 monetary units of investment budget? 4. Discuss the relationship between total cost and investment budget? (Hint: rerun the model using different budget levels and see if a useful relationship can be deduced between total cost and available budget). 5. Solve the problem by as lo considering maximum storage capacity of 800 available. Solve the problem when the available budget constraint is 650 and once is 1000. Compare the results and discuss. (Create two separate buttons assign macros)