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 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.

Answer 1

C(350) = 5085
C(351) = 5083

C'(Q) = -1008000/Q^2 + 6.3
C'(350) = -1.93

pretty close