The XYZ Manufacturing Company Produces Ball Bearings

question 45

Short Answer

The XYZ manufacturing company produces ball bearings. The annual fixed cost is $20,000 and the variable cost per ball bearing is $3. The price is related to demand according to the following equation: 1000 - 8p.
-What is the nonlinear profit function for the XYZ company? Simplify the terms as much as possible.

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Definitions:

Lead Time

The duration between the initiation and completion of a process, such as the time from placing an order to its delivery.

Standard Deviation

A measure of the dispersion or variability within a set of data points, indicating how much variation exists from the average.

ESC (Expected Shortage per Cycle)

The average amount of inventory shortage anticipated during a single replenishment cycle in inventory management.

Lot Size

The quantity of items that are processed, manufactured, or purchased at one time.