Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Yes the problem has to do with storage cost vs. shipment cost. I have a business that sends products to a storage facility that fulfil
Yes the problem has to do with storage cost vs. shipment cost. I have a business that sends products to a storage facility that fulfil orders. And I want to know the optimal amount of products I should send to the facility that is most cost efficient. The storage facility charges money to store the products. The amount they charge per day is the amount of products in the facility multiplied by 2,5 cents per product To send products to the storage unit the company has to pay shipment cost. The starting price for shipment sending 1 box to storage cost 10,25 and for each additional box is 2,75. Each box can hold a maximum of 20 products he average sales of the company is 34 products per month or 8,6 products per week What would be the optimal amount of product to send to the storage facility to be most cost efficient in storage cost and shipment cost? Yes the problem has to do with storage cost vs. shipment cost. I have a business that sends products to a storage facility that fulfil orders. And I want to know the optimal amount of products I should send to the facility that is most cost efficient. The storage facility charges money to store the products. The amount they charge per day is the amount of products in the facility multiplied by 2,5 cents per product To send products to the storage unit the company has to pay shipment cost. The starting price for shipment sending 1 box to storage cost 10,25 and for each additional box is 2,75. Each box can hold a maximum of 20 products he average sales of the company is 34 products per month or 8,6 products per week What would be the optimal amount of product to send to the storage facility to be most cost efficient in storage cost and shipment cost
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started