Shoe stores carries a basic black dress shoe for men which, Ask an Expert

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Q. Shoe Stores carries a basic black dress shoe for men which sell at a rate of 500 each quarter. Their current policy is to order 500 per quarter, with a fixed cost of $30/order. Annual holding cost is 20% of cost of items held. Subsequent cost structure is applicable:

Order Quantity Price/pair
0-99 $36
100-199 32
200-299 30
300+ 28

For a price of $36, optimal order quantity is

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9311947

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