7. A cookie company sells cookies in 1 pound containers. The estimated demand is 1,000,000 containers. The set-up cost for each production run is $500 and the cost of storing each container over the year is $.40. How many containers should the company produce per production run and how many production runs should be ordered to minimize the production costs?

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ISBN:9781119256830
Author:Amos Gilat
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7. A cookie company sells cookies in 1 pound containers. The estimated demand is 1,000,000
containers. The set-up cost for each production run is $500 and the cost of storing each
container over the year is $.40. How many containers should the company produce per
production run and how many production runs should be ordered to minimize the production
costs?
Transcribed Image Text:7. A cookie company sells cookies in 1 pound containers. The estimated demand is 1,000,000 containers. The set-up cost for each production run is $500 and the cost of storing each container over the year is $.40. How many containers should the company produce per production run and how many production runs should be ordered to minimize the production costs?
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