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Beeswax Candle Company manufactures natural beeswax candles to be used in churches. Their standard 2 4 x 2 diameter candle is demanded at
Beeswax Candle Company manufactures natural beeswax candles to be used in churches. Their standard x diameter candle is demanded at a rate of candles per month. It costs $ to set up the molds to craft this particular model; once the molds are set up they will continue to make candles until the batch is completed. Each candle sells for $; the holding cost per candle per year is of that selling price. Once the batch is completed, the company will go on to make other models of candle until such time as they run out and need to make another batch. Once production starts, the company can make candles at a rate of candles per month.
How many candles should Beeswax Candle Company manufacture in each batch in order to minimize their annual batch setup and inventory holding costs?An old, traditional barbecue restaurant smokes its brisket for at least hours before serving; as a result, it must make the brisket in advance. Daily demand for the brisket is a mean of pounds, with a standard deviation of pounds. The restaurant buys the brisket and materials to prepare the meat for cooking for $ per pound. Once the brisket is served, it sells for $ per pound. As stated, this is an old, traditional barbecue restaurant; once they run out of brisket, they close up shop for the evening. If they don't run out of brisket by closing time, the remainder is sliced into sandwiches, wrapped up and donated to a local food shelter, generating a $ per pound tax break. How many pounds of brisket should the restaurant make each day in order to maximize their expected profits?
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