You are running a blu ray distribution company and are looking to manage inventory as efficiently as possible. The manufacturer offers different costs depending on the quantity. They will print no less than 25 at once or more than 400 at once.

Info

blu rays:sold/yr: 2000

Yearly storage cost per blu ray: $5 (.42/month)

-Constant demand

-Storage costs are paid continuously (cost per month is $5.00/12)

1. Determine how many books to produce in order to minimize annual cost

2. cost per book equation (using this equation: y=a*ln(x)+b to fit data)

3. annual cost equation (production cost eq+storage cost eq)

4. derivative of annual cost eq

5. how does this solutioon/method minimize costs?

Count Cost per Blu ray 25 $ 12.32 50 $ 10.71 100 $ 12.67 150 $ 11.37 200 $ 10.65 250 $ 10.52 300 $ 10.38 350 $ 10.25 400 $ 10.12 Count Cost per Blu ray 25 $ 12.32 50 $ 10.71 100 $ 12.67 150 $ 11.37 200 $ 10.65 250 $ 10.52 300 $ 10.38 350 $ 10.25 400 $ 10.12