A dealer supplies you the following information with regard to a product dealt-in by him:Annual demand: 10,000 units
Ordering cost: 10 TL per orderInventory carrying cost: 20% of value of inventory per year
Price: 20 TL per unitThe dealer is considering the possibility of allowing some back-order (stock-out) to occur.
Hehas estimated that the annual cost of back-ordering will be 25% of the value of inventory.

What should be the optimum number of units of the product he should buy in one lot?