An electronics firm uses 600 cases of components each year. Each case costs $1,000. The cost of

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An electronics firm uses 600 cases of components each year. Each case costs $1,000. 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 a minimum? (Assume that the components are used at a constant rate throughout the year and that each shipment arrives just as the preceding shipment is being used up.)

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Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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