A publishing company sells 400,000 copies of a certain book each year. Ordering the entire amount printed

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A publishing company sells 400,000 copies of a certain book each year. Ordering the entire amount printed at the beginning of the year ties up valuable storage space and capital. However, printing the copies in several partial runs throughout the year results in added costs for setting up each printing run, which costs $1000. The carrying costs, figured on the average number of books in storage, are $.50 per book. Find the most economical lot size, that is, the production run size that minimizes the total setting up and carrying costs.

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Calculus And Its Applications

ISBN: 9780134437774

14th Edition

Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar

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