$S_j=$ cost per order placed for item $j$

$i=$ inventory carrying charge as a percentage of the cost per unit

$W=$ the maximum amount of space available for all goods

$w_j=$ space required for item $j$

The decision variables are $Q_j,$ the amount of item $j$ to order. The model is:

Minimize ${\displaystyle \underset{j=1}{\overset{N}{}}}[C_j{D}_j+\frac{S_j{D}_j}{Q_j}+i{C}_j\frac{Q_j}{2}]$

$s.t{\displaystyle \underset{j=1}{\overset{N}{}}}{w}_j{Q}_{j}W$

$,Q_{j}0,j=1,2,$dotsN

In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost is the nu Set up a spreadsheet model for the following data:

$\backslash$table$[[,$Item $1,$Item $2,$Item $3],[$Annual Demand,$2,000,2,000,1,500],[$Item Cost $($$$),80,50,70],[$Order Cost $($$$),150,135,125],[$Space Required $($sq$.$ feet$),50,25,40]]$

$W=5,000$

$i=0\mathrm{.}2$

Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than $0$ for So If required, round your answers to two decimal places.

Optimal Solution:

$Q_1=$

$Q_2=$

$Q_3=$

If required, round your answer to the nearest dollar. Do not round intermediate calculations.

Total cost $=$$