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Calculus

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The annual inventory cost C for a manufacturer is C=(1,008,000/Q)+6.3Q where Q is the order size when the inventory is replenished. Find the change in annual cost when Q is increased from 350 to 351, and compare this with the instantaneous rate of change when Q=350.

  • Calculus - ,

    C(350) = 5085
    C(351) = 5083

    C'(Q) = -1008000/Q^2 + 6.3
    C'(350) = -1.93

    pretty close

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