Best Buy is concerned about its inventory of Sony Magnolia 85” 4K Ultra HD TVs. It wants to have at least 3,000 TVs available at a given time. It costs the firm $20 to place an order. It sells 50,000 TVs a year and it costs $20 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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