an automibile dealer expects to sell 400 cars a year the cars cost 11000 each plus a fixed charge of $500 per delivery. if it costs 1000 to store a car for a year find the order size and the

The question is incomplete. The complete question is as follows,

An automobile dealer expects to sell 400 cars a year. The cars cost 11000 each plus a fixed charge of $500 per delivery. If it costs 1000 to store a car for a year, find the order size and the number of orders that minimize inventory cost.

EOQ = 20 units

Number of orders = 20 orders

Explanation:

To calculate the optimal order size that minimize the inventory costs, we need to calculate the Economic order quantity (EOQ). The formula for calculating EOQ is as follows,

EOQ = √(2 * D * O) / H

Where,

EOQ  = √(2 * 400 * 500) / 1000

EOQ = 20 units

The order quantity to minimize the inventory cost is 20 units per order.

The number of orders based on EOQ and annual demand that minimize the inventory cost = 400 / 20 = 20 orders.

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