Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 6 - Applications of the Derivative - 6.3 Further Business Applications: Economic Lot Size; Economic Order Quantity; Elasticity of Demand - 6.3 Exercises - Page 329: 14



Work Step by Step

$q=\sqrt \frac{2fM}{k}=\sqrt\frac{2(5)(900)}{1}\approx94.868$ $T(94)\approx 282.8723$ and $T(95)\approx284.8684$, so ordering 95 units of the drug each time minimizes the annual cost
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