Question: A local shop has a relatively stable demand for tins of sweetcorn throughout the year, with an annual total of 1 , 4 0 0

A local shop has a relatively stable demand for tins of sweetcorn throughout the year, with an annual total of 1,400 tins. The cost of placing an order is estimated at 15 and the annual cost of holding inventory is estimated at 25 per cent of the product's value. The company purchases tins for 20p. How much should the shop order at a time, and explain what tradeoffs are considered in making this decision?

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