Question
Please show in Excel: Amber sells shoes that cost $50 each to purchase and prepare for sale. Annual sales are 10,000 shoes, carrying costs are
Please show in Excel: Amber sells shoes that cost $50 each to purchase and prepare for sale. Annual sales are 10,000 shoes, carrying costs are 15 percent of inventory costs, and Amber incurs a cost of $25 each time an order is placed. (a) What is the EOQ for the shoes? (b) What will be the total inventory costs if the EOQ amount is ordered? (c) Suppose that Ambers supplier decides to offer a 3 percent cash discount if products are ordered in increments of 1250. How many shoes should Amber order each time an order is placed to minimize total inventory costs?
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