GENTLE ELECTRIC COMAPNY

for(i in 0:500)

+{

+ if(i<=100){

+ totalmatcost<-1200*(500.5*(i))/i

+ avgcost<-(500.5*(i))/i

+ holdingcost<-(avgcost*0.2*i)/2

+ orderingcost<-(1200/i)*25

+ totalcost<-totalmatcost+holdingcost+orderingcost

+ print(totalcost)

+}

+ else if(i>100 && i<=200){

+ totalmatcost<-1200*(50050+490.5*(i-100))/i

+ avgcost<-(50050+490.5*(i-100))/i

+ holdingcost<-(avgcost*0.2*i)/2

+ orderingcost<-(1200/i)*25

+ totalcost<-totalmatcost+holdingcost+orderingcost

+ print(totalcost)

+}

+ else(i>200)

+{

+ totalmatcost<-1200*(50050+49050+475.5*(i-200))/i

+ avgcost<-(50050+49050+475.5*(i-200))/i

+ holdingcost<-(avgcost*0.2*i)/2

+ orderingcost<-(1200/i)*25

+ warehousingcost<-(i-200)*12
+ totalcost<-totalmatcost+holdingcost+orderingcost+warehousingcost

+ print(totalcost)}

+}

TC<-c(totalcost)

Mincost<-min(TC)

Ordersize<-match(Mincost,TC)

cat(“Optimal cost is”, Mincost, “for an ordersize of”, Ordersize)

So, we get results as

Optimal cost is 602519.1 for an ordersize of 285