Question
50. Thiewes Shoes begins each period with 100 pairs of hiking boots in stock. This stock is depleted each period and reordered. If the carrying
50. Thiewes Shoes begins each period with 100 pairs of hiking boots in stock. This stock is depleted each period and reordered. If the carrying cost per pair of boots per year is $3, what are the total carrying costs for the hiking boots? If they sell 600 pairs per year, how many times per year do they restock? If the restocking cost is $20 per order, what are the total restocking costs? What is their EOQ? What is total cost?
Total Carrying Cost: $150
Restocking Cost: $120
They restock about 6 times per year.
EOQ: 89.44 units
Total cost: 268.32
Answers are bolded. Not sure how to get them.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started