Suppose that a company needs 1,800,000 items during a year and that preparation for each production run costs $500. Suppose also that it costs $23 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.

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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Suppose that a company needs 1,800,000 items during a year and that preparation for each production run costs $500. Suppose also that it costs $23 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.

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