Macyrsquos is having a sale on their perfume but it is for, Ask an Expert

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Macy’s is having a sale on their perfume, but it is for today only! The price has been reduced from $50 to $47. Due to your hyperactive nose, you can only wear perfume for a single day per year (weird I know…), therefore your annual demand is 365 units per year. It costs you $20 per order you make (gas cost to get to Macy’s) and you have a holding cost percentage of 10%. Given this one time discount, what is your optimal order quantity?

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Financial Management, Finance

Category:- Financial Management
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