What is the order quantity that minimizes the sum of the cost of ordering plus the cost of holding inventory. Assume holding costs are based on average inventory over a cycle and the cost per unit per unit time is the interest rate * cost of the part. Also, assume instantaneous replenishment.
1. You have been asked to perform an analysis to assist in deciding how much of two products to produce to maximize the profit. The total profit associated with producing a units of product a and b units product b is given as a single function that is given below:ππ (ππ , ππ ) = […]