Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $600. Suppose also that it costs $11 to produce each item and $2 per year to store an item. Use the inventory cost model to find the number of items in each production run so that the total costs of production and storage are minimized. items/run Submit Answer

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter2: Graphical And Tabular Analysis
Section2.1: Tables And Trends
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Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $600.
Suppose also that it costs $11 to produce each item and $2 per year to store an item. Use the inventory cost model to find
the number of items in each production run so that the total costs of production and storage are minimized.
items/run
Submit Answer
1
Transcribed Image Text:Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $600. Suppose also that it costs $11 to produce each item and $2 per year to store an item. Use the inventory cost model to find the number of items in each production run so that the total costs of production and storage are minimized. items/run Submit Answer 1
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