Ch.5 Prac Problems.docx - 5.16 The bookstore at Ohio State...

5.16 The bookstore at Ohio State University purchases jackets emblazoned with the Ohio
State logo from a vendor. The supplier sells the jackets to the store for $43 per jacket. The cost
to the bookstore for placing an order is $270, and the annual carrying cost is 22% of the cost
of a jacket. The bookstore manager estimates that 3,500 jackets will be sold during the year.
The supplier has offered the bookstore the following all-unit volume discount schedule.
Determine bookstore’s optimal order quantity, given this quantity discount information.
5.17 Determine the optimal order quantity of jackets and total annual cost in problem 5.16 if
the carrying cost is a constant $15 per jacket per year.