A pharmacist wants to establish an optimal inventory policy for a new antibiotic that requires refrigeration in storage. The pharmacist expects to sell 6000 packages of this antibiotic at a steady rate during the next year. She plans to place several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $15, and carrying costs, based on the average number of packages in inventory, amount to $8 per year for one package. A) let x be the order quantity and r the number of orders placed during the year. Find the inventory cost (ordering cost plus carrying cost) in terms of x and r.
B) Find the constraint function
C) Determine the economic order quantity that minimizes the inventory cost and then find the minimum inventory cost.