Tennis Equipment Manufacturers
Calculus problem?
Inventory Cost
A California distributor of sporting equipment expects to sell 10,000 cases of tennis balls during the coming year at a steady rate. Yearly carrying costs (to be computed on the average number of cases in stock during the year) are $10 per case, and the cost of placing an order with the manufacturer is $80.
a) find the inventory cost incurred if the distributor orders 500 cases at a time during the year.
the constraint is “r times x = 10,000″
r = # of orders in a year
x = # of items in each order
C = 80r + 10 times x/2 or C= 80r + 5x
I don’t know how to compute it with the 500 cases at a time during the year. the book is unclear on how to do this (I hate my textbook) .. but theres that problem above with the information needed.
U sure u should be studying this?