maycigrimaldi4990
20.12.2021 •
Mathematics
Sarah owns and operates a small factory that manufactures plastic bottles which she sells to bottling companies. Additional information: Annual demand is 1 million bottles spread evenly over the year Setup cost is $5000 per batch Holding cost is $3 per annum for each bottle Maximum production capacity is 2 million bottles per annum Currently, bottles are manufactured in 10 batches A. Find the optimum production quantity that Sarah should produce to minimize her costs B. Calculate the current annual holding cost and setup cost
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