Question: An electronics store expects to sell 2 5 2 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
IfCx is the inventory cost which is the sum of the ordering costs
and the carrying costs and x is the number of TVs in each order
Cx
How many TVs the manager should request each time she places
an order to minimize the inventory cost
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