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The M-Den on State Street needs your help deciding how many Go Blue t-shirts to order at a time. In 2023, the expected (annual) demand
The M-Den on State Street needs your help deciding how many "Go Blue" t-shirts to order at a time. In 2023, the expected (annual) demand for their "Go Blue" t-shirt is 5000. The M-Den incurs a fixed order processing cost of $20 per order of t-shirts and a holding cost of $0.02 per t-shirt per day (assume 360 days per year). What is the optimal order size [Q*] for the "Go Blue" t-shirts and what is the total cost [TC(Q*)] of doing so
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