Question: An electronics store expects to sell 1 8 0 0 TVs at a steady rate next year. The manager of the store plans to order
An electronics store expects to sell TVs at a steady rate next year. The manager of the store plans to order these TVs from the
manufacturer by placing several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $
for the setup costs and $ per TV The carrying costs, based on the average number of TVs in inventory, amount to $ per year for
one TV
If is the inventory cost which is the sum of the ordering costs and the carrying costs and is the number of TVs in each order
How many TVs the manager should request each time she places an order to minimize the inventory cost?
Click here if you cannot come up with an equation you will lose of your points if you do
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
