Question: ( 5 points ) See worksheet EOQ - Nonlinear with the nonlinear order cost function A ( Q ) = 1 0 0 + 5

(5 points) See worksheet EOQ - Nonlinear with the nonlinear order cost function A (Q)=100+5
Q
(where the fixed cost for an order of size Q is A (Q), i.e., it now depends on the order size). What is the
optimal order quantity that minimizes
T AC (Q)= A (Q)\times
D
Q
+
1
2
\times Q \times H \times V,
where A (Q)=100+5
Q? Note that this function is still convex (e.g., using an online graphing
calculator). Then, we can minimize the TAC in Solver (subject to the constraint Q >=0).

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