# 2 pencils at the EMU bookstore are sold at a fairly steady rate of 60 per week. The pencil cost the bookstore 0.02 MU each and sell for 0.15 MU each. It costs the bookstore 12 MU to initiate an order and holding costs are based on an annual interet rate of 25%. Determine the optimal number of pencils for the bookstore to purchase and the time between placement of orders. What are the holding and setup costs for this item? Please mention formulas and do it in detail so I can understand.
# 2 pencils at the EMU bookstore are sold at a fairly steady rate of 60 per week. The pencil cost the bookstore 0.02 MU each and sell for 0.15 MU each. It costs the bookstore 12 MU to initiate an order and holding costs are based on an annual interet rate of 25%. Determine the optimal number of pencils for the bookstore to purchase and the time between placement of orders. What are the holding and setup costs for this item? Please mention formulas and do it in detail so I can understand.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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# 2 pencils at the EMU bookstore are sold at a fairly steady rate of 60 per week.
The pencil cost the bookstore 0.02 MU each and sell for 0.15 MU each. It costs the
bookstore 12 MU to initiate an order and holding costs are based on an annual interet
rate of 25%. Determine the optimal number of pencils for the bookstore to purchase and
the time between placement of orders. What are the holding and setup costs for this item?
Please mention formulas and do it in detail so I can understand.
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