Suppose the total cost C for ordering and storing x units is What order size will produce a minimum cost? Round your answer to the nearest unit produced.

Question

Suppose the total cost C for ordering and storing x units is  What order size will produce a minimum cost? Round your answer to the nearest unit produced.

Quizplus · Accepted Answer

To find the minimum cost, we need to find the derivative of the cost function and set it to zero. 
C(x) = 11ec1854_fdb3_04b3_acfc_6baaa18937c7_TBX8702_11
C'(x) = 11ec1854_fdb3_04b7_acfc_e1d8db508b45_TBX8702_11
Setting C'(x) = 0, we get:
0 = -0.02x + 1.4
x = 70
Rounding to the nearest whole number, the best choice is 70.

Suppose the Total Cost C for Ordering and Storing X