QUESTION 1

1. The same scenario will be used for all questions.

   Keith Shoe Stores carries a basic black dress shoe for men that sells at an annual demand of 2000 pairs. Keiths current buying policy is to order 500 pairs each time an order is placed. An order costs Keith $30 to place. The annual carrying cost for each pair over a one year period is 20% of the price of a pair that Keith pays. At the order quantity of 500 pairs, Keith pays the lowest possible unit price of $28 per pair that the supplier could offer. Other quantity discounts offered by the supplier are given in the following table.

   Order Quantity	Unit Price
   Up to 199	$32
   200 up to 299	$30
   300 and more	$28

   If Keith is willing to pay a unit price of $32.00, determine the economic order quantity (EOQ).

   		146
   		141
   		137
   		199
   		None of the above

QUESTION 2

1. If Keith is willing to pay a unit price of $30.00, determine the economic order quantity (EOQ)

   		146
   		141
   		137
   		199
   		None of the above

QUESTION 3

1. If Keith is willing to pay a unit price of $28.00, determine the economic order quantity (EOQ)

   		146
   		141
   		137
   		199
   		None of the above

QUESTION 4

1. If Keith is willing to pay a unit price of $32.00, determine the actual order quantity if it takes the advantage of the quantity discounts.

   		146
   		141
   		200
   		199
   		None of the above

QUESTION 5

1. If Keith is willing to pay a unit price of $30.00, determine the actual order quantity if it takes the advantage of the quantity discounts.

   		146
   		141
   		200
   		199
   		None of the above

QUESTION 6

1. If Keith is willing to pay a unit price of $28.00, determine the actual order quantity if it takes the advantage of the quantity discounts.

   		146
   		141
   		200
   		199
   		None of the above

QUESTION 7

1. If Keith is willing to pay a unit price of $32.00, determine the total, including the purchase, carrying and ordering, cost

   		64920.00
   		64940.00
   		64938.31
   		64876.36
   		None of the above

QUESTION 8

1. If Keith is willing to pay a unit price of $30.00, determine the total, including the purchase, carrying and ordering, cost.

   		60900.00
   		61100.00
   		60848.53
   		60898.51
   		None of the above

QUESTION 9

1. If Keith is willing to pay a unit price of $28.00, determine the total, including the purchase, carrying and ordering, cost.

   		56860.00
   		56880.00
   		57040.00
   		56819.76
   		None of the above

QUESTION 10

1. Which order quantity do you recommend to Keith?

   		200
   		300
   		146
   		141
   		None of the above