i started with the first charges: sqrt[2(20)(100))/0.05].
I don't know I'm doing right.
Here the problem:
Suppose you have a choice of three suppliers for footballs. the first charges $100 per delivery but won't deliver more than 200 at a time; the second charges $100 also but won't deliver less than 300; the third will deliver any quantity but charges $200. Which supplier should you use? In all cases r = 20 and s=$0.05
To determine which supplier you should use, we need to find the total cost of each supplier based on the given criteria and compare them.
Let's break down the costs for each supplier:
Supplier 1:
- Price per delivery: $100
- Maximum quantity per delivery: 200
To find the total cost, we need to calculate the number of deliveries required for a given quantity using the formula:
Number of deliveries = (Quantity) / (Maximum quantity per delivery)
In this case, the quantity is set as r = 20, so the number of deliveries for Supplier 1 would be:
Number of deliveries = 20 / 200 = 0.1 deliveries
Since Supplier 1 won't deliver less than 200, we need to round up the number of deliveries to 1. Hence, we need to pay for 1 delivery, which is $100.
Supplier 2:
- Price per delivery: $100
- Minimum quantity per delivery: 300
Similar to Supplier 1, we need to calculate the number of deliveries for Supplier 2 based on the given quantity (r = 20):
Number of deliveries = 20 / 300 = 0.067 deliveries
Again, we need to round up the number of deliveries to 1. Hence, we need to pay for 1 delivery, which is $100.
Supplier 3:
- Price per delivery: $200
- No restrictions on quantity
In this case, we don't need to calculate the number of deliveries as Supplier 3 is flexible and will deliver any quantity. Therefore, the cost for Supplier 3 would be $200.
Now that we have the costs for each supplier, we can compare them:
Supplier 1: $100
Supplier 2: $100
Supplier 3: $200
Based on the costs, it seems like both Supplier 1 and Supplier 2 are offering the same price while Supplier 3 charges double. In this scenario, it would be more cost-effective to choose either Supplier 1 or Supplier 2 since they have the same price per delivery.