A manufacture has an annual demand (M) for 400 units of a product. It costs the manufacture R75 to make one unit of the product(g), R500 to set up the factory to be able to make the product (f) and R16 to store one unit of the product for one year (k). The total annual cost to the company to make and store the product is
T(x)=fx+ gM + kM/2x
where x is the number of batches made every year. to minimise the total annual cost, determine
1. How many batches should be made annually?
2.how many units per batch should be made and
3.How many often during the year(rounded to the nearest day) a batch should be made.
