Consider the EOQ Model for Multiple Products That Are Independent

question 51

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.)

---

Definitions:

Moral Right To Life

The fundamental belief that every human being has an inherent right to live and should not be unjustly deprived of life.

DNA

DNA, or deoxyribonucleic acid, is the hereditary material in humans and almost all other organisms that carries genetic information.

Fetus Viability

The point in pregnancy at which a fetus possesses the capacity to survive outside the uterus, generally considered to be around 24 weeks of gestational age.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.