A manufacturer has a steady annual demand for 22,638

A manufacturer has a steady annual demand for 22,638 cases of sugar. It costs $7 to store 1 case for 1 year, $33 in set up cost to produce each batch, and $20 to produce each case. Find the number of cases per batch that should be produced to minimize cost.

 

Solution:-

The manufacturer should produce 512 cases per batch.

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