- #1
Karol
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Karol said:Homework Statement
View attachment 230767
View attachment 230768
Homework Equations
Minimum/Maximum occurs when the first derivative=0
The Attempt at a Solution
$$Q=\sqrt{\frac{2(K+pQ)}{h}}~\rightarrow~Q=\frac{2}{h}(KM+pM)$$
##Q'=0~## gives no sense result
Karol said:In the old model:
$$A(Q)=\frac{KM}{Q}+cM+\frac{hQ}{2}$$
Where c is the purchase cost of one item. in the new model:
$$A(Q)=\frac{K+pQ}{Q/M}+cM+\frac{hQ}{2}=\frac{KM}{Q}+(c+p)M+\frac{hQ}{2}$$
And differentiating gives the same result
A minimization problem in economics involves finding the minimum value of a certain variable or function. In the context of quantity to order, it refers to determining the minimum amount of a product to order to minimize costs or maximize profits.
In economics, the quantity to order is often determined by solving a minimization problem. The goal is to find the minimum amount of a product to order that will result in the lowest cost or highest profit.
When solving a minimization problem for quantity to order, factors such as the cost of the product, the demand for the product, and any fixed costs associated with ordering are taken into account. Other factors may include storage and transportation costs, as well as any discounts or promotions offered by the supplier.
Solving a minimization problem for quantity to order can benefit a business by helping them optimize their ordering process. By finding the minimum amount to order, businesses can reduce their costs and increase their profits. This can also help them manage their inventory more efficiently and avoid overstocking or understocking products.
Yes, a minimization problem can be solved using mathematical equations. These equations can take into account various factors and constraints to determine the optimal quantity to order. However, it is important to note that real-world situations may not always follow mathematical models perfectly, so other factors and adjustments may need to be considered in the decision-making process.