A publishing company sells 400,000 copies of a certain book each year. Ordering the entire amount printed at the beginning of the year ties up valuable storage space and capital. However, printing the copies in several partial runs throughout the year results in added costs for setting up each printing run, which costs $1000. The carrying costs, figured on the average number of books in storage, are $.50 per book. Find the most economical lot size, that is, the production run size that minimizes the total setting up and carrying costs.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A publishing company sells 400,000 copies of a certain book each year. Ordering the entire amount printed at the beginning of the year ties up valuable storage space and capital. However, printing the copies in several partial runs throughout the year results in added costs for setting up each printing run, which costs $1000. The carrying costs, figured on the average number of books in storage, are $.50 per book. Find the most economical lot size, that is, the production run size that minimizes the total setting up and
carrying costs.
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