antibiotic that requires refrigeration in storage. The pharmacist expects to sell 3000 packages of this antibiotic at a steady rate during the next year. She plans to place several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $15, and carrying costs, based on the average number of packages in inventory, amount to $4 per year for one package. Use this information to answer the following questions. (a) Let x be the order quantity and r the number of orders placed during the year. Find the inventory cost (ordering cost plus carrying cost) in terms of x and r. C=______ (b) Find the constraint function. (c) Determine the economic order quantity that minimizes the
antibiotic that requires refrigeration in storage. The pharmacist expects to sell 3000 packages of this antibiotic at a steady rate during the next year. She plans to place several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $15, and carrying costs, based on the average number of packages in inventory, amount to $4 per year for one package. Use this information to answer the following questions. (a) Let x be the order quantity and r the number of orders placed during the year. Find the inventory cost (ordering cost plus carrying cost) in terms of x and r. C=______ (b) Find the constraint function. (c) Determine the economic order quantity that minimizes the
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
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A pharmacist wants to establish an optimal inventory policy for a new antibiotic that requires refrigeration in storage. The pharmacist expects to sell 3000 packages of this antibiotic at a steady rate during the next year. She plans to place several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $15,
and carrying costs, based on the average number of packages in inventory, amount to $4
per year for one package. Use this information to answer the following questions.
and carrying costs, based on the average number of packages in inventory, amount to $4
per year for one package. Use this information to answer the following questions.
(a) Let x be the order quantity and r the number of orders placed during the year. Find the inventory cost (ordering cost plus carrying cost) in terms of x and r.
C=______
(b) Find the constraint function.
(c) Determine the economic order quantity that minimizes the inventory cost and then find the minimum inventory cost.
x=_________
C=$________
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