Pampered Pet, Inc., is a large pet store located in Eastwood Mall. Although the store specializes in
Question:
Pampered Pet, Inc., is a large pet store located in Eastwood Mall. Although the store specializes in dogs, it also sells fish, turtle, and bird supplies. Everlast Leader, which is a leather lead for dogs, costs Pampered Pet $7 each. There is an annual demand for 6,000 Everlast Leaders. The manager of Pampered Pet has determined that the ordering cost is $10 per order, and the carrying cost as a percent of the unit cost is 25%. Pampered Pet is now considering a new supplier of Everlast Leaders. Each lead would cost only $6.65, but to get this discount, Pampered Pet would have to buy shipments of 3000 Everlast Leaders at a time. Should pampered Pet use the new supplier and take this discount for quantity buying?
Step by Step Answer:
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna