Lecture_23_Problem_Set-1.doc

Lecture_23_Problem_Set-1.doc - = # of batches of items made...

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Math 104 Lecture 23 Problem Set 1. A deck is to be built on the corner of a cottage. A railing is to be constructed around the four outer edges of the deck. If the length of the available railing is 40 metres, find the dimensions which will have the maximum area . 2. A rock band travels from gig to gig in a large bus. This bus burns fuel at the rate of litres per kilometre, where . while traveling km/ hour. a) If fuel costs \$ .90 per litre, find the speed that will produce minimum total cost for a 400 km trip. b) Find the minimum total cost. 3. The demand function for a package of surgical gloves is modelled by where is the price (\$) and x is the number of packages. How many packages should be produced in order to maximize revenue ? 4. The demand function for a certain artist's print is modelled by How many prints should be produced in order to maximize revenue ?

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Economic Lot Size : Total manufacturing costs
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Unformatted text preview: = # of batches of items made = fixed set up costs to make each batch of the product \$ cost / unit = total number produced each year. _____________________________ = cost to store 1 unit (batch) for one year----------------------------------------------------------------------------------------------------------------------------------------------------------------A market has a steady demand for 16,800 cases of sugar. It costs \$3 to store a unit for 1 year, and the market pays \$7 for each order that is placed. [Think set-up price = order costs.] Find the number of orders of sugar that should be placed each year. [ to minimize costs, of course]------A restaurant has an annual demand for 900 bottles of a California wine. It costs \$1 to store 1 bottle for 1 year. and it costs \$5 to place a reorder. Find the number of orders that should be placed annually.-----...
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This note was uploaded on 11/25/2010 for the course BUSINESS BU111 taught by Professor Yost during the Fall '10 term at Wilfred Laurier University .

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Lecture_23_Problem_Set-1.doc - = # of batches of items made...

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