Design and implement a heuristic algorithm for optimal ordering coordination of a large group of items having different fixed order setup costs Ki, demand rates Di and holding costs Hi. Assume that for any cluster of items that is coordinated so that all replenishment orders of items within the cluster, the single fixed order setup cost for the cluster is the maximum of the individual fixed order costs of the items in the cluster.
(a) Compare your algorithm's performance with that of uncoordinated optimization of the EOQ of each individual item.
(b) Under what circumstances would it be better to still prefer to individ- ually optimize each item's order releases?