# A gas station sells Q gallons of gasoline per year, which is delivered N times per year in equal shipments ofgallons. Thecost of each delivery is d dollars and the yearly storage costs are sQT, where T is the length of time (a fraction of a year)between shipments and s is a constantWhich value of N minimize the costs? Hint: Express T in terms of N.(Use symbolic notation and fractions where needed.)Find the optimal number of deliveries if Q 4 million gal, d = \$8000, and s = 31 cents/gal-yr(Your answer should be a whole number, so compare costs for the two integer values of N nearest the optimal value.)N =

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Step 1

Let N be the shipment per year and the time interval between the shipments is T= 1/N.

The storage cost per year is sQ/N and yearly delivery cost is dN.

Step 2

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