Economic order quantity question! Please help by showing all your work!
A bank branch must keep a stock of cash in hand for customer withdrawals. The net daily withdrawal rate at the branch is $10,000. The opportunity cost of cash is 6% per year. Replenishment of cash stock from the central bank requires careful accounting and contracting to an armored delivery service. The cost is $400 per replenishment and requires two days’ notice to the carrier. Determine the optimal policy for obtaining cash.