Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The University Gift Shop purchases sweatshirts emblazoned with the school's name and logo from a vendor in Toronto. The vendor sells the sweatshirts to the

image text in transcribed

The University Gift Shop purchases sweatshirts emblazoned with the school's name and logo from a vendor in Toronto. The vendor sells the sweatshirts to the Gift Shop for $34.99 a piece. Shipping from Toronto to London costs $110 per order. When an order arrives, it has been estimated that receiving an inspection tasks cost the Gift Shop \$25. The annual holding cost for a sweatshirt is calculated as 11% the purchase cost. The Gift Shop manager estimates that 3100 sweatshirts will be sold during the upcoming academic year. Assume that there are 260 business days a year. If the economic order quantity is 500 , what is the reorder point if the lead time is 3 business days? A. 36 B. 6 C. 25.5 D. 4.1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management of Technological Innovation

Authors: Melissa A. Schilling

5th edition

1259539067, 9781259737817 , 978-1259539060

More Books

Students also viewed these General Management questions