How much should the shop order at a time, and what is the total cost of the plan?

Question1

A local shop has a relatively stable demand for tins of sweetcorn throughout the year, with an annual total of 1,400 tins. The cost of placing an order is estimated at €15 and the annual cost of holding inventory is estimated at 25 per cent of the product’s value. The company purchases tins for 20c. How much should the shop order at a time, and what is the total cost of the plan?

Price