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A local retailer of plumbing supplies faces demand for one of its SKUs at a constant rate of 9 , 0 0 0 units per

A local retailer of plumbing supplies faces demand for one of its SKUs at a constant rate of 9,000 units per year. The unit cost of the SKU is 10 per unit. The cost of capital is 10% per year, which implies the annual holding cost per unit is 10% of 10. It costs the retailer 20 to process an order to replenish stock.
What is the optimal order quantity of the SKU in each order cycle?

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