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The demand for winter tires is estimated as 30,000 for the next year. The cost of ordering a shipment is $300, and the cost of
The demand for winter tires is estimated as 30,000 for the next year. The cost of ordering a shipment is $300, and the cost of storing each tire is $3 per year. Each shipment arrives just as the previous one has been sold. Determine the number of tires that should be in each shipment in order to minimize the total ordering and storage cost.
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