Matthew liotine‘s dream store sells beds and assorted supplies. his best-selling bed has an annual demand of 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?

The optimal order quantity is 6

Explanation:

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