Explore BrainMass

Explore BrainMass

    Mathematics - Calculus - Minimizing Cost

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    An electronic firm uses 600 cases of transistors each year. Each case costs $1000. The cost of storing one case for a year is 90 cents and the ordering fee is $30 per shipment. How many cases should the firm order each time to keep total cost at minimum. (Assume that transistors are use at a constant rate throughout the year and that each shipment arrives just as the preceeding shipment is being used up.

    © BrainMass Inc. brainmass.com December 15, 2022, 7:27 pm ad1c9bdddf

    Solution Preview

    Let the firm order x cases each time.

    Total cost = fixed cost + variable cost = [600 x 1000] + ...

    Solution Summary

    The expert uses calculus to determine minimizing costs. A complete, neat and step-by-step solution is provided.