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The Home and Garden ( HG ) chain of superstores imports decorative planters from Italy. Weekly demand for planters averages 1 , 5 0 0

The Home and Garden (HG) chain of superstores imports decorative planters from Italy. Weekly demand for planters averages 1,500 with a standard deviation of 800. Each planter costs $10. HG incurs a holding cost of 25% per year to carry inventory. HG has an opportunity to set up a superstore in the Bakersfield region. Each order shipped from Italy incurs a fixed transportation and delivery cost of $10,000. Consider 52 weeks in the year.
What is the optimal order quantity of planters for HG?
The Home and Garden (HG) chain of superstores imports decorative planters from Italy. Weekly demand for planters averages 1,500 with a standard deviation of 800. Each planter costs $10. HG incurs a holding cost of 25% per year to carry inventory. HG has an opportunity to set up a superstore in the Bakersfield region. Each order shipped from Italy incurs a fixed transportation and delivery cost of $10,000. Consider 52 weeks in the year.
What is the optimal order quantity of planters for HG?
24,980
21,463
27,093
30,083

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