Problem 805

 

A manufacturer of hospital supplies has a uniform annual demand for 500000 boxes of bandages. It costs 10 to store one box of bandages for one year and250 to set up the plant for production. How many times a year should the company produce boxes of bandages in order to minimize the total storage and setup costs?

 

Solution:-

 

The company should produces boxes of bandages 100 times(s) a year.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *