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Suppose that in the inventory problem, there is an annual cost, k, for storing a single unit, plus an annual cost per unit, k,

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Suppose that in the inventory problem, there is an annual cost, k, for storing a single unit, plus an annual cost per unit, k, that must be paid for each unit up to the maximum number of units stored. The number of units that should be ordered or manufactured to minimize the total cost in this case is q = 2fM k + 2k2 Every year, Gianna sells 67,500 cases of her Famous Spaghetti Sauce. It costs her $1 per year in electricity to store a case, plus she must pay annual warehouse fees of $2 per case for the maximum number of cases she will store. If it costs her $750 to set up a production run, plus $7 per case to manufacture a single case, how many production runs should she have each year to minimize her total costs? Gianna should have production runs each year to minimize her total costs.

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