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Q. Harvard Co-op orders sweatshirts with Harvard University emblem on m and sells m for $50 each. During a typical month, 900 sweatshirts are sold (this includes all styles and sizes ordered from a particular supplier). It costs $25 to place an order (for multiple sizes and styles) and 25 percent to carry sweatshirts in inventory for a year.
a) Explain how many sweatshirts should Co-op order at 1 time?
b) Supplier would like to deliver sweatshirts once a week. Explain how much will this cost Co-op per year? Under illustrate what conditions would you agree to supplier's proposal?
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