Hiking boots r us is a local shoe store in franklin annual, Operation Management

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Hiking boots r us is a local shoe store in franklin annual

Hiking Boots R Us is a local shoe store in Franklin. Annual demand for a popular hiking boot is 600 pairs per year, and Nairo Quintana, the owner of Hiking Boots R Us, has the habit of ordering 75 pairs of these hiking boots every time he places an order. Nairo estimates that the ordering cost is $25 and the cost of the hiking boots is $57.

a) What is the annual ordering cost if the optimal ordering quantity is 75?

b) What is the carrying cost (%) if the optimal ordering quantity is 75? (Enter real number- i.e. 12.5% should be entered as 12.5)

c) What is the annual holding cost if the optimal ordering quantity is 75?

d) What is the EOQ if carrying cost is 15%?

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