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Cerrena [4.2K]
3 years ago
7

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?

Business
1 answer:
Sergio [31]3 years ago
5 0

Answer:

The optimal order quantity is 6

Explanation:

Please see attachment

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Answer:

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Explanation:

We know,

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