Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN: 9781285741550
Author: James Stewart
Publisher: Cengage Learning
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A Califomia distributor of sporting equipment expects to sell 5,600 cases of tennis balls during the coming year at a steady rate. Yearly carrying costs (to be computed on the average number of cases in stock during the year) are $10 per case, and the cost of placing an order with the manufacturer is $70. (a) Find the inventory cost incurred if the distributor orders 350 cases at a time during the year. (b) Determine the economic order quantity, that is, the order quantity that minimizes the inventory cost. Let x be the number of cases per order and r the number of orders placed per year. If C represents the inventory cost, then the objective equation is C=r+x. The constraint equation is rx = (Do not include the $ symbol in your answer.) (a) The inventory cost is $. (Simplify your answer.) (b) The economic order quantity is cases. (Simplify your answer.)
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Transcribed Image Text:A Califomia distributor of sporting equipment expects to sell 5,600 cases of tennis balls during the coming year at a steady rate. Yearly carrying costs (to be computed on the average number of cases in stock during the year) are $10 per case, and the cost of placing an order with the manufacturer is $70. (a) Find the inventory cost incurred if the distributor orders 350 cases at a time during the year. (b) Determine the economic order quantity, that is, the order quantity that minimizes the inventory cost. Let x be the number of cases per order and r the number of orders placed per year. If C represents the inventory cost, then the objective equation is C=r+x. The constraint equation is rx = (Do not include the $ symbol in your answer.) (a) The inventory cost is $. (Simplify your answer.) (b) The economic order quantity is cases. (Simplify your answer.)
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