Neilsen Cookie Company Sells Its Assorted Butter Cookies in Containers

question 119

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 $.20 for each container of cookies. The cost of storing each container of cookies over the year is $.80.
​
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?
​

---

Definitions:

Social-cultural Influences

The effects of society and culture on an individual's beliefs, behaviors, and perceptions.

Biopsychosocial Perspective

An approach in psychology that considers biological, psychological, and social factors and their complex interactions in understanding health, illness, and human functioning.

Positive Psychology

An area within psychology dedicated to examining how humans thrive and function positively across various aspects of life, including biological, individual, interpersonal, organizational, cultural, and worldwide perspectives.

Happiness

A state marked by contentment and a high sense of well-being, where individuals experience emotions from mild satisfaction to extreme delight.