This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 3. If inventory is ordered in batches of x units per order, the total annual inventory cost is given by where x > 0. (a) Determine the order size, x , that minimizes the total annual inventory cost. (b) Compute the minimum total annual inventory cost. Answers: 1. x = 500; minimum inventory cost is C (500) = $10,000 2. x = 1000; minimum inventory cost is C (1000) = $16,000 3. x = 1200; minimum inventory cost is C (1200) = $30,000...
View Full Document
This note was uploaded on 04/08/2008 for the course MATH 106 taught by Professor Piasick during the Spring '08 term at Bryant.
- Spring '08