Long description

The results table, row by row descending, reads as follows:

  • Optimal Order Quantity, Q asterisk; 200

  • Maximum Inventory; 200

  • Average Inventory; 100

  • Number of Orders; 5

  • Blank cell; blank cell

  • Holding cost; 50 dollars

  • Setup cost; 50 dollars

  • Blank cell; blank cell

  • Unit costs; zero dollars

  • Total cost, T subscript lowercase c; 100 dollars

A tip box pointing to the total cost of 100 dollars reads “Total cost including holding, ordering, and if it is given, unit cost is computed here.”

A graph titled Inventory: Cost versus Quantity is included on the solution screen. It is a line graph that plots out setup cost, holding cost, and total cost lines.

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