Step 1 :We are given that the store sells \(Q = 100\) units of a product per year. It costs \(d = \$20\) to store one unit for a year. To reorder, there is a fixed cost of \(b = \$40\) dollars, plus \(c = \$15\) dollars for each unit.
Step 2 :We are asked to find how many times per year the store should reorder, and in what lot size, in order to minimize inventory costs.
Step 3 :The general solution to this problem is given by the formulas for order size and lot size: \[\text{order size} = \sqrt{\frac{Qd}{2b}}\] and \[\text{lot size} = \sqrt{\frac{2bQ}{d}}\]
Step 4 :Substituting the given values into these formulas, we find that the order size is \(5.0\) and the lot size is \(20.0\).
Step 5 :Thus, the store should reorder \(\boxed{5}\) times per year and the lot size should be \(\boxed{20}\) units.