Illustrate what is the minimum-price order quantity

Assignment Help Operation Management

Reference no: EM1375277

Q. Allen´s Shoe Store carries a basic black dress shoe for a man which sells at an approximate constant rate of 500 pairs of shoes every three months. Allen´s present buying policy is to order 500 pairs each time an order is placed. It prices $30 to place an order also inventory holding prices have an annual rate of 20 percent. With the order quantity of 500, Allen´s obtains the shoes at the lowest possible unit price 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

Illustrate what is the minimum-price order quantity for the shoes? Illustrate what are the annual savings of your inventory policy over the policy presently used?

Reference no: EM1375277

Questions Cloud

Compute the opportunity cost : Nation X's production possibilities frontier is given through the following table, Further suppose that the each country is currently manufacturing and consuming at Point C on its production possibilities frontier.

Illustrate what would you do as the operations manager : Nike faced a similar dilemma in Vietnam, where it was accused of paying less than a liveable wage ($1.60 per day). Illustrate what would you do as the Operations Manager.

Which of the subsequent is one of the primary tasks faced : Which of the subsequent is one of the primary tasks faced by managers who need to improve organizational communication.

Illustrate what is the break-even point : Assume a fixed price of $900, a variable price of $4.50 also a selling price of $5.50. Illustrate what is the break-even point. Explain how many units must be sold to make a profit of $500.00.

Illustrate what is the minimum-price order quantity : Illustrate what is the minimum-price order quantity for the shoes. Illustrate what are the annual savings of your inventory policy over the policy presently used.

Free trade initiatives argue against tariffs : Free trade initiatives discuss against tariffs, quotas, and any other fence to trade. The rush of imports from nations that have a comparative advantage, however, meets with resistance from domestic industries threatened through those imports.

Difference between a monopolist and competitive firm : Kellogg's, breakfast food people, comprises one of four corporations that control about 92% of its market for breakfast food. Kellogg's would be considered;

Examine some of the reasons you might outsource. : explain how much of product "A" might you plan to acquire through outsourcing. Examine some of the reasons you might outsource.

Illustrate what is the epmo metric : If out of a sample of 2500 applications, 85 failed to meet this requirement, illustrate what is the epmo metric also illustrate what six sigma level does it correspond to.

User Account

All Pages