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## Homework Statement

The cost function:

E(Cost)=E(F-LS)

^{3}

F is for Finished goods

L is for Lambda

S is for Sales

After expanding the function, what assumption minimized this function with respect to F?

## The Attempt at a Solution

F

^{3}-3F

^{2}LS+3F(LS)

^{2}-(LS)

^{3}

I know that I need to identify the terms that include both sales and inventories. The sales terms are the information needed for minimization.

Any ideas?

Thanks!