sarah owns and operates a small factory that manufacture plastic bottles which she sells to bottling companies.
additional information:
annual demand is 1 million bottles spread evenly over the year
setup cost is $ 5000 per batch
holding cost is $3 per annum for each bottle.
maximum production capacity is 2 million bottles per annum
currently, bottles are manufactured in 10 batches
A. Find the optimum production quantity that sarah should produce to minimize her costs.
B. calculate the current annual holding cost and setup cost .
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Q6) Sunita travelled 15 km 268 m by bus, 7 km 7 m by car and 500 m on foot in order to reach her school. How far is her school from her residence
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plastic bottles which she sells to
bottling companies.
Additional information:
Annual demand is 1 million bottles spread evenly over the year
Setup cost is $5000 per batch
Holding cost is $3 per annum for each bottle
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