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Business, 10.03.2020 00:41 jakiyahporter0817

Shoe Shine is a local retail shoe store located on the north side of Centerville. Annual demand for a popular sandal is 500 pairs, and John Dirk, the owner of Shoe Shine, has been in the habit of ordering 100 pairs at a time. John estimates that the ordering cost is $10 per order. The cost of the sandal is $5 per pair.

1. If the carry cost were 10% of the cost, then the optimal order quantity would be pairs of sandal.
2. If the optimal order quantity were 100 pairs of sandal, the carry cost should be percent of the cost.

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