Suppose that on average you spend over 200 per week at a


Suppose that on average, you spend over $200 per week at a constant rate over the week. You only have a saving account and pay all your bills in cash. The only opportunity you have to get to the bank is at your lunch hour. You estimate the inconvenience of running the errand at $5 per trip. By taking money from your saving account you forgo interest rate at 5% per week.

How much money should you get each time? How often should you go to the bank?

  • The amount of money you should get from the bank each time is $_______
  • You should go to bank every ______ days (1 wk = 7days)

 

 

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Operation Management: Suppose that on average you spend over 200 per week at a
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