Question: Please help answer this question. I got a different answer from what someone previously posted. If you can please provided step by step so I
Please help answer this question. I got a different answer from what someone previously posted. If you can please provided step by step so I can comprehend thank you.
The manager of a bookstore at City College purchases T-shirts from a vendor at a cost of $25 per shirt. The bookstore incurs an ordering cost of $100 per order, and the annual holding cost is 18% of the purchase cost of a T-shirt. The store manager estimates that the demand for T-shirts for the upcoming year will be 1,800 shirts. The store operates 50 weeks per year, five days per week.
The vendor is willing to offer a quantity discount to the bookstore according to the following schedule:
| Order Quantity | Discount |
| 0 to 499 | 0% |
| 500 to 799 | 2% |
| 800 to 999 | 3% |
| 1,000 + | 4% |
|
|
|
- Determine the optimal order quantity and the total annual inventory cost
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