Problem

A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bott...

A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bottle costs $12, plus a fixed charge of $125 per order. If it costs $10 to store a bottle for a year, how many bottles should be ordered at a time and how many orders should the warehouse place in a year to minimize inventory costs?

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Solutions For Problems in Chapter 3.5