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NiceShoes retail store sells one model of casual shoes all around the year. The demand for this model has an approximately constant rate of 750 pairs every three months. the store incurs an ordering cost of $ 75 and a holding cost of 20 %. The supplier offers NiceShoes the following price structure.   Q4. Which order quantity results in the lowest cost?

NiceShoes retail store sells one model of casual shoes all around the year. The demand for this model has an approximately constant rate of 750 pairs every three months. the store incurs an ordering cost of $ 75 and a holding cost of 20 %. The supplier offers NiceShoes the following price structure.   Q4. Which order quantity results in the lowest cost?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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NiceShoes retail store sells one model of casual shoes all around the year. The demand for this model has an approximately constant rate of 750 pairs every three months. the store incurs an ordering cost of $ 75 and a holding cost of 20 %. The supplier offers NiceShoes the following price structure.

 

Q4. Which order quantity results in the lowest cost?

Quantity 1-249 250-349 350-499 >=500 Price $40 $38 $36 $34
Transcribed Image Text:Quantity 1-249 250-349 350-499 >=500 Price $40 $38 $36 $34
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