Question
A pharmacist wants to establish an optimal inventory policy for a new antibiotic that requires refrigeration in storage. The pharmacist expects to sell 7200 7200
A pharmacist wants to establish an optimal inventory policy for a new antibiotic that requires refrigeration in storage. The pharmacist expects to sell 7200
7200 packages of this antibiotic at a steady rate during the next year. She plans to place several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $ 18 comma
$18, and carryingcosts, based on the average number of packages ininventory, amount to $ 8
$8 per year for one package. Use this information to answer the following questions.
(a) Let x be the order quantity and r the number of orders placed during the year. Find the inventory cost(ordering cost plus carryingcost) in terms of x and r.
(b) Find the constraint function.
(
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