Question: ( Quantity Discount Model ) Keith Shoe Stores carries a basic black dress shoe that sells at a constant rate of 5 0 0 pairs
Quantity Discount Model Keith Shoe Stores carries a basic black dress shoe that sells at a constant rate of pairs of shoes every three months. Keith's current buying policy is to order pairs each time an order is placed. It costs Keith $ to place an order. The annual holding cost rate is With the order quantity of pairs, Keith obtains the shoes at the lowest possible cost of $ per pair. Other quantity discounts ordered by the manufacturer are described as follows:
Order Quantity Price per pair
$
$
$
or more $ what is the savings of Keith's shoes when using the quantity discount model as opposed to their current pricing structure pairs What is the average flow time using the basic setup assuming working days in a year
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