A Health Food Store Stocks Bottles of Multivitamins

question 82

Short Answer

A health food store stocks bottles of multivitamins. It orders equal quantities of stock from its wholesaler at equally spaced points throughout the year. The cost of replacing each order is $250. Moreover, the cost of keeping a jar of vitamins in inventory is $1 per year. The store predicts that it will sell 12,500 bottles of vitamins in the next year. How many orders of how many bottles each will result in a minimum cost to the health food store?
Enter your answer exactly as: a, b (integers) where a represents the number of orders and b represents the number of bottles in each order (no units or words).

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Definitions:

Surface Bargaining

A term used in labor relations, referring to the practice of negotiating a contract without the intention of reaching a meaningful agreement.

Unilateral Change

Actions taken by one party, especially by an employer regarding work conditions, without agreement from the other party, such as employees or unions.

BATNA

Best Alternative to a Negotiated Agreement; the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached.

Bargaining Environment

The context or setting in which negotiation between parties (e.g., employers and employees) takes place, including all influencing factors.