Problem
A toy shop produces battery-operated airplanes. The demand for these airplanes is constant at the rate of 500 airplanes per year. The cost of an airplane is $50 and the ordering cost is $10 per order. The annual holding cost per airplane is $3.
Determine the following:
i. The optimal order quantity per order
ii. The optimal number of orders per year
iii. The time between the orders in days
iv. The minimum total annual inventory costs