What is the minimum-cost order quantity for the shoes? what, Ask an Expert

Management Studies

Allen's Shoe Stores carries a basic black dress whoe for men that sells at an approximate constant rate of 500 pairs of shoes every three months. Allen's current buying policy is to order 500 pairs each time an order is placed. It costs $30 to place an order, and inventory-carrying costs have an annual rate of 20 percent. With the order quantity of 500, Allen's obtains the shoes at the lowest possible unit cost of $28 per pair. Other quantity discounts offered by the manufacturer are listed below:

Order Quantity Price Per Pair

0-99 $36

100-199 $32

200-299 $30

300 or more $28

What is the minimum-cost order quantity for the shoes? What are the annual savings of your inventory policy over the policy currently being used?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M989148

Have any Question?Write your Review or question?

Related Questions in Operation Management

Answer each of the following in 250 words1 describe the

Answer each of the following in 250 words: 1. Describe the stages of the product life cycle. 2. Describe the characteristics of services.

Race one motors is an indonesian car manufacturer at its

Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 300 per day, and it uses these subcomponents at a rate of 12,400 per y ...

Please answer all of these questions based on the assigned

Please answer all of these questions based on the assigned readings and or your personal knowledge. Running a specialty cafe has been difficult. You are shorthanded in the kitchen and have only two part-time servers. Sal ...

Explain the origin or reason for these internal or external

Explain the origin or reason for these internal or external driving forces. Explain how these forces directly affect the viability of your organization. Choose one of the driving forces. Describe the specific issues this ...

Microsoft internships please describe how you demonstrate

Microsoft internships Please describe how you demonstrate your passion for technology inside or outside of the classroom. How do you see technology or the lack of technology empowering or disempowering people in your com ...

1 who is ultimately responsible for setting high quality

1. Who is ultimately responsible for setting high quality standards for a business? Choose a company you are familiar with and explain who deserves credit, or takes the blame, when production exceeds (or fails) a high qu ...

1 describe collaboration tools that can be used for

1. Describe collaboration tools that can be used for face-to-face meetings. Describe tools that can be used for virtual, synchronous meetings. 2. Explain the role of goals and goal setting in organizations. 3. Take an ex ...

1 identify an organization that faced a crisis of some type

1. Identify an organization that faced a crisis of some type that was highly publicized. How did the organization address the crisis? What specifically did they do once it was evident a crisis was afoot? 2. Why is it cri ...

Customer service automation bahia mar condo

Customer Service Automation; Bahia Mar Condo Re-Opening SCENARIO: You are a CRM consultant for a corporate CRM Consulting company headquartered in Houston. You are having a discussion with the owners and managers of the ...

Letrsquos admit it with very few expectations we all love

Let’s admit it: With very few expectations, we all love dogs. We love to be with our dogs, and our dogs love to be with us. So it is only natural, then, to want to keep our dogs with us as much as possible, even when we ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert