Question: A sporting goods store sells 150 pool tables per year. It costs $8 to store one pool table for a year. To reorder, there is
A sporting goods store sells 150 pool tables per year. It costs $8 to store one pool table for a year. To reorder, there is a fixed cost of $24 per shipment plus $17 for each pool table. How many times per year should the store order pool tables, and in what lot size, in order to minimize inventory costs?
ANSWER: The store should order 3030 pool tables 55 times per year to minimize inventory costs.
Can I get a walk through on why 3030 and 55 are the correct answers and how I should've gotten it?
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