Question: 5 8 . 1 2 . 4 Allen s Shoe Stores carries a basic black dress shoe for men that sells at an approximate constant
Allens Shoe Stores carries a basic black dress shoe for men that sells at an approximate constant rate of pairs of shoes every three months. Allens current buying policy is to order pairs each time an order is placed. It costs $ to place an order, and inventorycarrying costs have an annual rate of percent. With the order quantity of Allens obtains the shoes at the lowest possible unit cost of $ per pair. Other quantity discounts offered by the manufacturer are listed below:
Order Quantity Price Per Pair
$
$
$
or more $
What is the minimumcost order quantity for the shoes? What are the annual savings of your inventory policy over the policy currently being used?
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