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Mathematics, 23.03.2020 17:24 malaysiae6321
A pharmacist wants to establish an optimal inventory policy for a new antibiotic that requires refrigeration in storage. The pharmacist expects to sell 4800 packages of this antibiotic at a steady rate during the next year. She plans to place several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $ 12, and carrying costs, based on the average number of packages in inventory, amount to $ 8 per year for one package. Use this information to answer the following questions.
a) let x be the order quantity and r the number of orders placed during the year. Find the inventory cost (ordering cost plus carrying cost) in terms of x and r
C= ?
b) Find the constraint function
c)Determine the economic order quantity that minimizes the inventory cost and then find the minimum inventory cost.
x=? C=$?
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