Question: The demand for motorcycles tires.......... Edit
Answer: Suppose x tires are in each shipment.
So in one year there will be (40000/x) shipment and the cost will be
400*(40000/x), storing cost will be 2*x.
So the total cost for x tires is,
So, C(x)= 2*x+[400*(40000/x)] is to be minimum
This implies that, 400*(40000/x²)=2
Thus, x=2828.427, (which is not a positive integer).
Hence the total 2828 tires will be in a shipment such that ordering & storage costs are to be minimize.
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