Matthew Liotine‘s Dream Store sells beds and assorted supplies. His best-selling bed has an annual demand of 400 units.Ordering
cost is $40; holding cost is $5 per unit per year.a) To minimize the total cost, how many units should be ordered each time an order is placed?b) If the holding cost per unit was $6 instead of $5, what would be the optimal order quantity?
1 answer:
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