Demand for a product at a depot is at a constant rate of 250 units per week.
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Question:
Demand for a product at a depot is at a constant rate of 250 units per week. The product is supplied to the depot from the factory. The factory cost is $10per unit, while the total cost of a shipment from the factory to the depot when the shipment has size Mis given by Shipment cost =$50+$2MThe inventory carrying cost in $/$/week is 0.004. Determine the appropriate shipment size.item value = $10+$2 per unit, order cost = $50
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