Dan Bumblauskas is the owner of a small Iowa companythat produces electric knives used to cut fabric. The annualdemand is for 8,000 knives, and Dan produces the knives inbatches. On average, Dan can produce 150 knives per day; duringthe production process, demand has been about 40 knives perday. The cost to set up the production process is $ 100, and it costsDan $.80 to carry a knife for I year. How many knives shouldDan produce in each batch?
Dan Bumblauskas is the owner of a small Iowa companythat produces electric knives used to cut fabric. The annualdemand is for 8,000 knives, and Dan produces the knives inbatches. On average, Dan can produce 150 knives per day; duringthe production process, demand has been about 40 knives perday. The cost to set up the production process is $ 100, and it costsDan $.80 to carry a knife for I year. How many knives shouldDan produce in each batch?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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| Dan Bumblauskas is the owner of a small Iowa company that produces electric knives used to cut fabric. The annual demand is for 8,000 knives, and Dan produces the knives in batches. On average, Dan can produce 150 knives per day; during the production process, demand has been about 40 knives per day. The cost to set up the production process is $ 100, and it costs Dan $.80 to carry a knife for I year. How many knives should Dan produce in each batch? |
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