Neilsen Cookie Company Sells Its Assorted Butter Cookies in Containers

question 31

Short Answer

Neilsen Cookie Company sells its assorted butter cookies in containers that have a net content of 1 lb.The estimated demand for the cookies is 1,000,000 1-lb containers.The setup cost for each production run is $250, and the manufacturing cost is $.50 for each container of cookies.The cost of storing each container of cookies over the year is $.20.
Assuming uniformity of demand throughout the year and instantaneous production, how many containers of cookies should Neilsen produce per production run in order to minimize the production cost?
Hint: Show that the total production cost is given by the function .
Then minimize the function on the interval (0, 1,000,000).
__________ containers of cookies per production run

---

Definitions:

Environment

Encompasses all external conditions and influences affecting the life and development of an organism or population.

Nature-Nurture

The debate regarding the relative importance of an individual's innate qualities ("nature") versus personal experiences ("nurture") in determining or causing differences in physical and behavioral traits.

Heredity

Inheriting physical or mental characteristics through genetics from ancestors to descendants.

Environment

Surroundings or conditions in which an organism lives or operates, influencing its growth, development, and behavior.