Inventory cost?

saybil Posts: 1, Reputation: 1

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Jan 9, 2014, 01:49 PM

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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