Best Buy is concerned about its inventory of Sony Magnolia 85” 4K Ultra HD TVs.  It wants to have at least 3,000 TVs available at a given time. It costs the firm $20 to place an order.  It sells 50,000 TVs a year and it costs $20 in storage/insurance per TV per year.   (a)  How many TVs should Best Buy order at a time? (b  How many TVs does Best Buy have on average in stock?

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Best Buy is concerned about its inventory of Sony Magnolia 85” 4K Ultra HD TVs.  It wants to have at least 3,000 TVs available at a given time. It costs the firm $20 to place an order.  It sells 50,000 TVs a year and it costs $20 in storage/insurance per TV per year.

 

(a)  How many TVs should Best Buy order at a time?

(b  How many TVs does Best Buy have on average in stock?

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