Question: Using the information for Rapallo Sneakers, Inc. in Problem 38, how much could be saved by ordering the EOQ? Problem 38 Rapallo Sneakers, Inc. sells
Using the information for Rapallo Sneakers, Inc. in Problem 38, how much could be saved by ordering the EOQ?
Problem 38
Rapallo Sneakers, Inc. sells a pair of LG sneakers for $40. Due to the recent fitness craze, these shoes are in high demand: 45 pairs of shoes are sold per week. The ordering cost is $40 per order, and the annual holding cost is 20 percent of the selling price. If the store operates 50 weeks a year, what can you say about the size of the current order quantity of 250 pairs?
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