Using Excel Solver to find min cost?

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In summary, the cost production function is given by f(x) = 8x^3 + (352/x^2) - 6x + 6350. To determine the value of x which minimizes the cost, the Excel Solver function can be used. The derivative of the function is f'(x) = -704/x^3 + 24x^2 - 6, which can be solved to find the inflection points. However, since the first derivative is raised to the power of 3, further steps are needed to find the minimum value of x. The Excel Solver function can also be used to find the values of x that will cause the cost to double.
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CanaBra
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Homework Statement



The cost production function as output, x, in 000's(where x>1.000) is given by the function
f(x)= 8x^3 + (352/x^2)-6x +6350

Homework Equations



USE THE EXCEL SOLVER function o determine the value of x which minimizes the cots. What is the cost at this point? What values of x will cause the cost to double?

The Attempt at a Solution


I have found the derivative of this function to be :
F'(x)= -704/x^3 + 24x^2-6

How do you solve this sort of function to find the minimum value of x?
If it was a squared only function, I could use the quadratic formula to find the inflection points, but this one after the first derivative is raised to the power of 3, what is the next step?
 
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I understand that this can be solved using the EXCEL SOLVER function, but I would really like to understand how to solve it by hand. Please would someone explain the steps to me?Thanks!
 

FAQ: Using Excel Solver to find min cost?

1. How does Excel Solver work to find the minimum cost?

Excel Solver uses a mathematical optimization algorithm called the Simplex method to find the minimum cost solution. It systematically adjusts the values of the decision variables until the objective function is minimized.

2. What are the necessary inputs for using Excel Solver to find min cost?

The necessary inputs for Excel Solver include the objective function, decision variables, constraints, and initial values for the decision variables. These inputs are used to create a mathematical model for the problem.

3. What types of problems can be solved using Excel Solver?

Excel Solver can be used to solve linear programming, nonlinear programming, and integer programming problems. It can also handle problems with multiple objectives and constraints.

4. How does Excel Solver handle constraints?

Excel Solver handles constraints by using the Simplex method to find the optimal values of the decision variables that satisfy all constraints. It also has the ability to handle both equality and inequality constraints.

5. Can Excel Solver find multiple solutions for a given problem?

No, Excel Solver is designed to find a single optimal solution for a given problem. It does not have the capability to find multiple solutions or provide a range of possible solutions.

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