Water Bed
Posted in Bed Comforter Sets on 05/14/2006 01:36 am by admin
Madeline Thimmes’ Dream Store sells water beds and assorted supplies. Her best-selling bed has an annual?
Madeline Thimmes’ Dream Store sells water beds and assorted supplies. Her best-selling bed has an annual demand of 400 units. Ordering cost is $40; holding cost is $4 per unit per year. To minimize the total cost, how many units should be ordered each time an order is placed?
400 = nx
cost, C
= 40n + 4x/n
= 40(400/x) + 4x(x/400)
= 16000/x + x^2 /100
C’ = -16000/x^2 + x/50 = 0
16000/x^2 = x/50
x^3 = 800000
x = 92.83
i don’t know if that’s right. i’ll just propose to order 100, 4 times per year.
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Classic Sleep Products Dutchess Mid Fill Softside Waterbed Set $1,299.00 |
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