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The Bench Company is a small manufacturer of wooden benches. Their line includes four types of benches that differ in size, material, finish, and color. Pertinent production data are as follows:
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[TABLE OF DATA IS IN AN ATTACHED FILE]
Bench has a small warehouse for finished benches, which has an area of 1500 ft2. Each bench has affixed location. Assuming i=20 percent annually, calculate the optimal quantities to be stored.
Bench has an offer to double the storage space, which will result in an increase of $200 in annual expenses. Should bench do it?
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https://brainmass.com/business/business-management/production-planning-control-bench-company-161415
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Question.doc