Ray’s Satellite Emporium wishes to determine the best order sizefor its best-selling satellite dish (Model TS111). Ray hasestimated the annual demand for this model at 1,000 units. His costto carry one unit is $10 per year per unit, and he has estimatedthat each order costs $25 to place. The purchase cost is $500 perunit.
For the order quantities Q = {25, 50, 75, 100, 125, 150}, findthe annual setup ordering cost (S*D/Q), holding cost (H*Q/2),purchasing cost (C*D), and the total annual cost (including thepurchase cost) Report the results for order quantity 25 inAnswersheet (3 points).
Report the Q value with the minimum total cost (select from thelist in cell B12) and the corresponding total cost in Answersheet(2 points).
