Kelvin Shoe Stores carries a basic black dress shoe for men that sells at a rate of 500 each quarter. Their current policy is to order 500 per quarter, with a fixed cost of $30/order. The annual holding cost is 20% of the cost of items held. The following cost structure is applicable:
Order Quantity |
Price/pair |
0-125 |
$35 |
126-225 |
34 |
226-350 |
33 |
351+ |
32 |
For a price of $35, the optimal order quantity (ignoring the price breaks) is ___________. (4)
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