Question: The laundry department of the Edinburgh hotel, TartanDays, orders concentrated laundry detergent in 10-kilogram boxes. Each box costs £32. It costs £20 to place, process and receive a laundry detergent order and TartanDays has estimated that it would cost £2 to hold a box of detergent in inventory for a year. The hotel uses 25 boxes of detergent per month.