Question: Keith Shoe Stores carries a basic black dress shoe for men that sells at an annual demand of 2 0 0 0 pairs. Keith's current
Keith Shoe Stores carries a basic black dress shoe for men that sells at an annual demand of pairs. Keith's current buying policy
is to order pairs each time an order is placed. An order costs Keith $ to place. The annual carrying cost for each pair over a one
year period is of the price of a pair that Keith pays. At the order quantity of pairs, Keith pays the lowest possible unit price
of $ per pair that the supplier could offer. Other quantity discounts offered by the supplier are given in the following table.
If Keith is willing to pay a unit price of $ determine the total, including the purchase, carrying and
ordering, cost.
incorrect
None of the above
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