optimal order quantity

Anonymous
timer Asked: Jan 4th, 2018
account_balance_wallet $5

Question description

Kelvin Shoe Stores carries a basic black dress shoe for men that sells at a rate of 500 each quarter. Their current policy is to order 500 per quarter, with a fixed cost of $30/order. The annual holding cost is 20% of the cost of items held. The following cost structure is applicable:

Order Quantity

Price/pair

0-125

$35

126-225

34

226-350

33

351+

32

For a price of $35, the optimal order quantity (ignoring the price breaks) is ___________. (4)

Tutor Answer

wexhumprey
School: UIUC

here is the work....

QM 670 Exam II

1. Kelvin Shoe Stores carries a basic black dress shoe for men that sells at a rate of 500 each
quarter. Their current policy is to order 500 per quarte...

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Review

Anonymous
Outstanding Job!!!!

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