A manufacturer has a steady annual demand for 15,190 cases of sugar. It costs $5 to store 1 case for 1 year, $31 in setup cost to produce each batch, and $18 to produce each case. (a) Find the number of cases per batch that should be produced to minimize cost. (b) Find the number of batches of sugar that should be manufactured annually. (a) The manufacturer should produce cases per batch.

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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A manufacturer has a steady annual demand for 15,190 cases of sugar. It costs $5 to store 1 case for 1 year, $31 in setup cost to produce each batch, and $18 to produce each case.
(a) Find the number of cases per batch that should be produced to minimize cost.
(b) Find the number of batches of sugar that should be manufactured annually.
(a) The manufacturer should produce
cases per batch.
Transcribed Image Text:A manufacturer has a steady annual demand for 15,190 cases of sugar. It costs $5 to store 1 case for 1 year, $31 in setup cost to produce each batch, and $18 to produce each case. (a) Find the number of cases per batch that should be produced to minimize cost. (b) Find the number of batches of sugar that should be manufactured annually. (a) The manufacturer should produce cases per batch.
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