https://myperfecttutors.com/wp-content/uploads/2021/04/whatsapp-logo.jpeg 0 0 admin https://myperfecttutors.com/wp-content/uploads/2021/04/whatsapp-logo.jpeg admin2021-06-11 08:24:282021-06-11 08:24:28Inventory control models - question 25 25) shoe shine is a local
Shoe Shine is a local retail shoe store located on the north side of Centerville. Annual demand for a popular sandal is 500 pairs, and John Dirk, the owner of Shoe Shine, has been in the habit of ordering 100 pairs at a time. John estimates that the ordering cost is $10 per order. The cost of the sandal is $5 per pair. For John’s ordering policy to be correct, what would the carrying cost as a percentage of the unit cost have to be? If the carry cost were 10% of the cost, what would the optimal order quantity be?
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