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  • Jan 9, 2014, 01:49 PM
    saybil
    Inventory cost?
    A t-shirt shop purchases from a vendor t-shirts. The vendor sells the t-shirts to the shop for $38 apiece. Ordering cost is $ 120, and carrying cost is is 25% of the average annual inventory value. The manager of the shop estimates that 1700 t-shirts will be sold during the year. The vendor has offered the shop the following volume discount schedule:
    Order size discount %
    1 - 299 0
    300 - 499 2
    500 - 799 4
    800 more 5


    based on the discount rates, determine the optimal order quantity.?

    PLEAAASE HELP ME

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