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Kinetica
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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
F3-3F2LS+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!