Comment by tarpitt
15 hours ago
Here is an example of a practical optimization problem:
A factory needs to produce 12,000 components per year. Each production run costs $300 to set up, and storing one component costs $4 per year. What production quantity Q minimizes the annual setup and storage costs?
Just like all school problems of this nature I have ever seen, the question lacks precision.
How long does a production run take and how many units can you do in a single sun? Since this isn't mentioned, the answer is to produce everything at the last second of the year. But we are also missing information on why the factory needs to produce 12,000 components in a year and for whom and about the logistics involved in getting those components to the buyer.
I always hated these type of questions for their lack of precision. You haven't even mentioned how many units in a single production run will be faulty and need to be scrapped instead of delivered, how am I supposed to optimize anything?!
Can you do a single run on the last day of the year?