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Question: WILSON LOT-SIZE FORMULA The Wilson lot-size formula in economics states that the optimal quantity Q of goods for a store to order is given by
Q = f(C, N, h) = √(2 CN/h)
Where C is the cost of placing an order, N is the number of items the store sells per week, and h is the weekly holding cost for each item. Find the most economical quantity of 10-speed bicycles to order if it costs the store $20 to place an order, $5 to hold a bicycle for a week, and the store expects to sell 40 bicycles a week.
Use augmented matrices
Use the Side-Splitting Theorem to find NI.
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