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How many probes should starfield order to minimize costs

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Reference no: EM132753423

Problem 1: Starfield Inc., orders planetary probes from its supplier Intergalactic at a cost of $1.50/probe. Starfield consumes the probes at the rate of 300/day and 365 days per year. Every time Starfield orders from Intergalactic it incurs a cost of $12. Starfield also faces an interest rate of 10% per year. Because the planetary probes are tiny storage costs are negligible. How many probes should Starfield order to minimize its costs?

Option 1: 219

Option 2: 854

Option 3: 4186

Option 4: 6279

Reference no: EM132753423

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