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December 19, 2014

Homework Help: math

Posted by Ashley (Ms. Sue Please help!!!) on Thursday, November 15, 2012 at 10:34pm.

Lehen Vinters imports a certain brand of beer. The demand, which may be assumed to be uniform, is 450,000 cases/year. The cost of ordering a shipment of beer is $500, and the cost of storing each case of beer for a year is $2. Determine how many cases of beer should be in each shipment if the ordering and storage costs are to be kept at a minimum. (Assume that each shipment of beer arrives just as the previous one has been sold.)

? cases of beer per order

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