A local outdoor vegetable stand has exactly 1,000 square feet of space to displaythree vegetables: tomatoes, lettuce, and zucchini. The appropriate data for theseitems are given in the following table.ItemTomatoes Lettuce ZucchiniAnnual demand 850 1,280 630(in pounds)Cost per pound $0.29 $0.45 $0.25The setup cost for replenishment of the vegetables is $100 in each case, and thespace consumed by each vegetable is proportional to its costs, with tomatoes requiring 0.5 square foot per pound. The annual interest rate used for computingholding costs is 25 percent. What are the optimal quantities that should be purchased of these three vegetables?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A local outdoor vegetable stand has exactly 1,000 square feet of space to display
three vegetables: tomatoes, lettuce, and zucchini. The appropriate data for these
items are given in the following table.
Item
Tomatoes Lettuce Zucchini
Annual demand 850 1,280 630
(in pounds)
Cost per pound $0.29 $0.45 $0.25
The setup cost for replenishment of the vegetables is $100 in each case, and the
space consumed by each vegetable is proportional to its costs, with tomatoes requiring 0.5 square foot per pound. The annual interest rate used for computing
holding costs is 25 percent. What are the optimal quantities that should be purchased of these three vegetables?

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