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A shoe store orders shoes from the manufacturer and sells them at a mall. Storing shoes at the store costs $6 per shoe pair for a year. When reordering shoes from the manufacturer, there is a fixed cost of $30 per order as well as $6 per shoe pair. The retail store sells 2500 shoe pairs each year. Find a function that models the total inventory costs as a function of x x the number of shoe pairs in each order from the manufacturer.

Answer :

batolisis

Answer:

$ ( 3 x  + 75000 / x )

Step-by-step explanation:

Function that models the total inventory cost as a function of x

holding cost = $6

ordering cost ( fixed cost ) = $30

cost of a pair = $6

Total demand = 2500

∴The total inventory cost ( TIC ) is represented as

holding cost + Ordering cost

= 1 / 2 ( x ) ($6 )  + 2500 / x  ( $30 )

= $ ( 3 x  + 75000 / x )

while total cost  = $ ( 3x + 75000 /x + ( 2500 * 6 ) )

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