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Q. The Harvard Co-op orders sweatshirts with the Harvard University emblem on them also sells them for $50 each. During a typical month, 900 sweatshirts are sold (this includes all styles also sizes ordered from a particular supplier). It price $25 to place an order also 25 percent to carry sweatshirts in inventory for a yr.

a) Explain how many sweatshirts should the co-op order at one time?

b) The supplier would like to deliver sweatshirts once a week. Explain how much will this price the co-op per yr? Under illustrate what conditions would you agree to the supplier's proposal?

c) Suppose which sales increase to 1500 sweatshirts per month but you decide to keep the lot size the same as in part a. explain how much will this decision price the co-op per yr?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9311130

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