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The annual inventory cost C for a manufacturer is C=(1,008,000/Q)+6.3Q where Q is the order size when the inventory is replenis...Asked by Anonymous
The annual inventory cost C for a manufacturer is C = 1,008,00/Q + 6.3Q where Q is the order size when the inventory is replenished. Find the change in annual cost when Q is increased from 350 to 351, and compare this with the instantaneous rate of change
when Q = 350.
when Q = 350.
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Answered by
oobleck
differential
∆C/∆Q = C(351)-C(350) = (1008000/351 + 6.3*351)-(1008000/350 + 6.3*350) = -1.90512
dC/dq = 6.3 - 1008000/Q^2 = -1.92857
∆C/∆Q = C(351)-C(350) = (1008000/351 + 6.3*351)-(1008000/350 + 6.3*350) = -1.90512
dC/dq = 6.3 - 1008000/Q^2 = -1.92857
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