The Soft Goods Department of a Large Department Store Sells

question 128

Essay

The soft goods department of a large department store sells 175 units per month of a certain large bath towel.The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $12.00.The store uses an inventory carrying charge of I = 27% per year.Determine (a)the optimal order quantity, (b)the order frequency,and (c)the annual holding and setup cost.If,through automation of the purchasing process,the ordering cost can be cut to $4.00,what will be (d)the new economic order quantity, (e)the order frequency,and (f)annual holding and setup costs? Explain these results.

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Definitions:

Enrichment

The process of improving the quality or value of something, often related to job roles by adding more meaningful tasks and duties.

Incumbents

Individuals currently holding a specified position or office, especially political positions, who often have a competitive advantage in elections due to their existing role.

Different Skills

Various abilities and competencies that individuals may possess or require across diverse tasks or occupations.

Variety

The inclusion of multiple different elements or types in a situation or collection.