A Store Uses 900 Cases of Electronic Parts Each Year

Multiple Choice

A store uses 900 cases of electronic parts each year. The cost of storing one case for a year is 80 cents and the ordering fee is $40 per shipment. How many cases should the store order each time to minimize total cost? Assume the orders are planned so that a new shipment arrives just as the number of cases in the store reaches zero. Also assume the parts are consumed at a constant rate.

A) 300 cases
B) 600 cases
C) 900 cases
D) 1,000 cases