Problem

INVENTORY A manufacturer of medical monitoring devices uses 36,000 cases of components per...

INVENTORY A manufacturer of medical monitoring devices uses 36,000 cases of components per year. The ordering cost is $54 per shipment, and the annual cost of storage is $1.20 per case. The components are used at a constant rate throughout the year, and each shipment arrives just as the preceding shipment is being used up. How many cases should be ordered in each shipment in order to minimize total cost?

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Solutions For Problems in Chapter 3.5