unii A store sells Q units of a product per year. It costs d dollars to store on

Question

unii A store sells Q units of a product per year. It costs d dollars to store one unit for The store should order 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 manycosts. times per year a store should reorder, and in what lot size, when Q 105, -10, b $21, and c $15 times per year to minimize inventory Qd order size 2b lot size 2bQ

Explanation / Answer

order size square root of (105*10)/(2*21) 5 units lot size square root of (2*21*105)/10 sqrt of 441 or (105/5units) = 21 times The store should order 5 units ,21 times per year in order to minimize inventory cost

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