An eyeglass retailer buys lenses from a supplier at $100 each. The retailer orders 250 lens pairs every year and the ordering cost is $36. Carrying costs per year (based on average inventory) are estimated to be 20% for each pair. The supplier offers a 10% on order quantities of 50 or more lens pairs. Determine the best order quantity and total cost

An eyeglass retailer buys lenses from a supplier at $100 each. The retailer orders 250 lens pairs every year and the ordering cost is $36. Carrying costs per year (based on average inventory) are estimated to be 20% for each pair. The supplier offers a 10% on order quantities of 50 or more lens pairs. Determine the best order quantity and total cost

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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