Essay
Consider the EOQ model for multiple products that are independent except for a budget restriction. The following model describes this situation:
Let Dk = annual demand for product k
Ck = unit cost of product k
Sk = cost per order placed for product k
i = inventory carrying charge as a percentage of the cost per unit
B = the maximum amount of investment in goods
N = number of products
The decision variables are Qk, the amount of product k to order. The model is:
s.t.
a. Set up a spreadsheet model and for the following data:
b. Solve the problem using Excel Solver. (Hint: For Solver to find a solution, you need to start with decision variable values that are greater than 0.)
Correct Answer:

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b. The optimal solution ...View Answer
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Correct Answer:
Verified
b. The optimal solution ...
View Answer
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