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Demand for a type of computer at Best Buy is 8 0 0 units per year. Best Buy incurs a fixed order placement, transportation, and

Demand for a type of computer at Best Buy is 800 units per year. Best Buy incurs a fixed order placement, transportation, and receiving cost of $3,500 each time an order is placed. Each computer costs Best Buy $1,850 and the retailer has an annual holding cost of 25 percent. Evaluate the optimal number of computers that the store manager should order in each replenishment lot.
a.
90 units
b.
110 units
c.
150 units
d.
190 units

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