Question Suppose that a company needs 2,000,000 items during a year and that preparation for each production run costs $250. Suppose also that it costs $0.40 per year to store an item. Using the inventory cost model, a) find the total cost of preparation and storage if there are 10,000 items in each run. 102000 X 52,000 b) find the total cost of preparation and storage if there are 125,000 items in each run. 401000 X c) find the number of items in each production run so that the total cost of preparation and storage is minimized. 5000 X d) What is the minimum cost possible for storage and preparation? 401000 X

Question Suppose that a company needs 2,000,000 items during a year and that preparation for each production run costs $250. Suppose also that it costs $0.40 per year to store an item. Using the inventory cost model, a) find the total cost of preparation and storage if there are 10,000 items in each run. x b) find the total cost of preparation and storage if there are 125,000 items in each run. c) find the number of items in each production run so that the total cost of preparation and storage is minimized. x d) What is the minimum cost possible for storage and preparation