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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
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
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