Problem:
At Dot Com, a large retailer of popular bools, demand is constant at 18700 per year. The cost of placinf an order to replenish stock is $5, and the annual stock of holding is $5 per book. Stock is received 15 working days after an order has been placed. No backordering is allowed.
Required:
Question: What is the optimal order quantity?
Note: Provide support for your rationale.