A drug store sells 30 bottles of antibiotics per week.Each time it orders antibiotics, there is a fixed ordering costof $10 and a cost of $10/bottle. Assume that the annualholding cost is 20% of the cost of a bottle of antibiotics, andsuppose antibiotics spoil and cannot be sold if they spendmore than one week in inventory. When the drug store placesan order, how many bottles of antibiotics should be ordered?
A drug store sells 30 bottles of antibiotics per week.Each time it orders antibiotics, there is a fixed ordering costof $10 and a cost of $10/bottle. Assume that the annualholding cost is 20% of the cost of a bottle of antibiotics, andsuppose antibiotics spoil and cannot be sold if they spendmore than one week in inventory. When the drug store placesan order, how many bottles of antibiotics should be ordered?
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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A drug store sells 30 bottles of antibiotics per week.
Each time it orders antibiotics, there is a fixed ordering cost
of $10 and a cost of $10/bottle. Assume that the annual
holding cost is 20% of the cost of a bottle of antibiotics, and
suppose antibiotics spoil and cannot be sold if they spend
more than one week in inventory. When the drug store places
an order, how many bottles of antibiotics should be ordered?
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