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Management Studies

Happy Pet, Inc. is a large pet store located in Long Beach Mall. Although the store specializes in dogs; it also sells fish, turtle and bird supplies. Everlast Leader, a leather lead for dogs, cost happy Pet $7.00 each. There is an annual demand for 6000 Everlast Leaders. The manager of Happy Pet has determined that the ordering cost is $20 per order, and the carrying cost as a percentage of the unit cost is 15%. Happy pet is now considering a new supplier of Everlast Leaders. Each lead would cost only $6.65; but in order to get this discount, Happy Pet would have to buy shipments of 3000 Everlast Leaders at a time. Should Happy Pet use the new supplier and take this discount for quantity buying?

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Operation Management, Management Studies

Category:- Operation Management
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