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Big City Productions, Inc. buys 4,000 blank CDs per month for use in producing rap music. The ordering cost is $12.50. Holding cost is $0.12 per CDs per year. a. How many CDs should Big City order at a time? b. What is the expected time between orders?

Big City Productions, Inc. buys 4,000 blank CDs per month for use in producing rap music. The ordering cost is

$12.50. Holding cost is $0.12 per CDs per year.

a. How many CDs should Big City order at a time? b. What is the expected time between orders?

 
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