Hart Marshall
02/03/2023 · Senior High School
A store sells \( Q \) units of a product per year. It costs \( d \) dollars to store one unit for a year. To reorder, there is a fixed cost of b dollars, plus c dollars for each unit. How many times per year should the store reorder, and in what lot size, in order to minimize inventory costs? Use the general solution to find how many times per year a store should reorder, and in what lot size, when \( Q=100, d=\$ 10, b=\$ 20 \), and \( c=\$ 14 \).
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The store should reorder 5 times per year with a lot size of 20 units.
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