Mathematics, 28.07.2020 17:01 jeanieb
A paint manufacturer has a uniform annual demand for 16,000 cans of automobile primer. It costs $4 to store one can of paint for one year and $500 to set up the plan for production of the primer. Let x be the number of cans of paint produced during each production run, and let y be the number of production runs. Then the setup cost is 500y and the storage cost is 2.c, so the total storage and setup cost is C = 500y +2.c. Furthermore, .cy = 16,000 to account for the annual demand. How many times a year should the company produce this primer in order to minimize the total storage and setup costs?
A. The company should have 6 production runs each year.
B. The company should have 8 production runs each year.
C. The company should have 10 production runs each year.
D. The company should have 11 production runs each year.
Answers: 1
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