B.The I-75 Carpet Discount Store has an annual demand of 10000 yards
of Super Shag carpet. The annual carrying cost for a yard of this
carpet is $0.75 and the ordering cost is $150. The carpet manufacturer normally charges the store $8 per yard for the carpet; howeverthe manufacturer has offered
a discount price of $6.50 per yard if the store will order 5000 yards. How much should the store order and what will be the total annual inventory cost for
that order quantity?C. The bookstore at State University purchases sweatshirts emblazoned
with the school name and logo form a vendor. The vendor sells the
sweatshirts to the store for $38.00 apiece. The cost to the bookstore
for placing an order is $120.00 and the carrying cost is 25% of the price paid per shirtThe bookstore manager estimates that 1700 sweatshirts will be sold
during the year. The vendor has offered the bookstore the following volume
discount schedule.Order Size Discount %1-299 0300-499 3500-799 5800 + 6The bookstore manager wants to determine the bookstores optimal order
quantity given the foregoing quantity discount information.
