How many tvs should best buy order at a time how many tvs, Financial Management

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How many tvs should best buy order at a time how many tvs

Best Buy is concerned about its inventory of TVs. It wants to have at least 5,000 TVs available at a given time. It costs the firm $15 to place an order. It sells 400,000 TVs a year and it costs $10 in storage/insurance per TV per year.

(a) How many TVs should Best Buy order at a time?

(b) How many TVs does Best Buy have on average in stock?

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