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Solve the Problem. -A Logo Baseball Cap Manufacturer Has a Uniform Annual Demand

Question 112

Essay

Solve the problem.
-A logo baseball cap manufacturer has a uniform annual demand of 25,000 caps. It costs $1 to store one baseball
cap for 1 year and $500 to set up the plant for production of the logo baseball caps. How many times a year
should the company produce the caps in order to minimize the total storage and set-up costs? (Assume that
there are 250 working days per year.)

Correct Answer:

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The company will min...

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