The demand for motorcycle tires imported by Dixie Import-Export is 49,000/year and may be assumed to be uniform throughout the year. The cost of ordering a shipment of tires is $360, and the cost of storing each tire for a year is $2. Determine how many tires should be in each shipment if the ordering and storage costs are to be minimized. (Assume that each shipment arrives just as the previous one has been sold.)
Marginal fee is the fee of generating one further unit. If we cope with x as non-end, the marginal fee functionality is the by-product c'(x). to shrink a functionality we set its by-product equivalent to 0. The by-product of c'(x) is c''(x). So what you are able to desire to do is resolve the equation c''(x) 0
Suppose x tires are in each shipment. So in on year there will be 49000/x shipments and the cost will be 360(49000)/x storing cost will be 2x. So the total cost for x tires is 2x+[360(49000)/x] So C(x) 2x+[360(49000)/x]is to be min. C'(x) 2- [360(49000)/x^2]0 or x^2 180(49000) 9(490000)(2) x 3(700)rt2. I guess the numbers are not correct because x is not an integer. Please check numerical details. If th sotrage cost is $1/tire then the answer is x 2100 which makes sense!
Suppose x tires are in each shipment. So in on year there will be 49000/x shipments and the cost will be 360(49000)/x storing cost will be 2x. So the total cost for x tires is 2x+[360(49000)/x] So C(x) 2x+[360(49000)/x]is to be min. C'(x) 2- [360(49000)/x^2]0 or x^2 180(49000) 9(490000)(2) x 3(700)rt2. I guess the numbers are not correct because x is not an integer. Please check numerical details. If th sotrage cost is $1/tire then the answer is x 2100 which makes sense!
Marginal fee is the fee of generating one further unit. If we cope with x as non-end, the marginal fee functionality is the by-product c'(x). to shrink a functionality we set its by-product equivalent to 0. The by-product of c'(x) is c''(x). So what you are able to desire to do is resolve the equation c''(x) 0
