Time left $2$:$3$

Demand for the Deskpro computer at Best Buy is $1,500$ units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of $$5,000$ each time an order is placed. Each computer costs Best Buy $$500$ and the retaile has an annual carrying$/$holding cost of $20$ percent. Evaluate the number of computers that the store manager should order in each replenishment lot.

$Q^{**}=\sqrt[\phantom{2}]{\frac{2DS}{hC}}$

Optimal lot size,

$[$D$=$ demand; $S=$ Order cost per lot; $C=$ Unit cost; $h=$ Carrying$/$holding cost