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Lots Are Ordered and Delivered Jointly for All Three Models 3. Best Buy sells three models of computers, the Litepro, the Medpro, and the Heavypro.

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Lots Are Ordered and Delivered Jointly for All Three Models 3. Best Buy sells three models of computers, the Litepro, the Medpro, and the Heavypro. Annual demands for the three products are for the Litepro =10000, units for the Medpro =1000, and units for the Heavypro =100. Each model costs Best Buy $500. A fixed transportation cost of $5,000 is incurred each time an order is delivered. For each model ordered and delivered on the same truck, an additional fixed cost of $1,000 per model is incurred for receiving and storage. Best Buy incurs an annual holding cost of 20 percent. Evaluate the lot sizes the Best Buy manager should order if lots for each product are ordered and delivered together. Also, evaluate the annual cost of such a policy

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