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. ( 2 5 points ) After your success in the t - shirt industry, you decide to start an ice cream empire. Your factory
points After your success in the tshirt industry, you decide to start an ice cream empire. Your
factory can produce your own ice cream at a rate of serving per second at a cost of $ per serving.
Starting a production run costs $ Assume that the holding cost of ice cream is associated with
cooling it $ per serving per minute in energy costs, which is surprisingly expensive rather than
opportunity costs; ingredients can be cooled for free. Demand for ice cream is a steady servings per
minute, all of which must be fulfilled.
a How much ice cream should you produce in each batch, and how long will a production run for a
batch take?
b What should your maximum inventory level
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