The following data describe 5 inventory items that are stored in the warehouse of a firm. Each item has relatively steady demand and its quantity must be expressed in integer units. No shortage is allowed in fulfilling the demand.

Item Setup cost Annual demand (units) Cost per unit Space per unit \"3) 1 $200 1,200 $100 3 2 $1,500 400 $2,000 24 3 $250 12,000 $144 2 4 $1,000 1,600 $1,200 18 5 $2,000 800 $1,600 12