Question: An import/export firm has leased 20,000 cubic feet of storage space to store six items that it imports from the Far East. The relevant data for the six items it plans to store in the warehouse are
Setup costs for each product amount to $2,000 per order, and holding costs are based on a 25 percent annual interest rate. Find the optimal order quantities for these six items so that the storage space is never exceeded.
(Hint: Use a cell location for the Lagrange multiplier and experiment with different values until the storage constraint is satisfied as closely as possible).