Assignment:
Matthew Liotine’s Dream Store sells beds and assorted supplies. His best-selling bed has an annual demand of cont’d 400 units. Ordering cost is $40; holding cost is $5 per unit per year
a) To minimize the total cost, how many units should be ordered each time an order is placed?
b) If the holding cost per unit was $6 instead of $5, what would be the optimal order quantity.
Provide complete and step by step solution for the question and show calculations and use formulas.