Minimize the total costs of production and storage

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Reference no: EM131792907

Inventory cost model

Suppose that a company needs 60,000 items during a year and that preparation for each production run costs $400.

Suppose further that it costs $4 to produce each item and $0.75 to store an item for one year.

Use the inventory cost model to find the number of items in each production run that will minimize the total costs of production and storage.

Reference no: EM131792907

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