question archive A retail store purchases computer software from a distributor for resale
Subject:Operations ManagementPrice:2.87 Bought7
A retail store purchases computer software from a distributor for resale. For an upcoming promotion, the retailer needs to determine the best order size for a one-time purchase. One of the products is a word processing software program that will have a special sale price of $350. The program can be purchased from the distributor for $250 each. If the program has leftover inventory, the retail store can return it to the distributor and get only $100 back per copy.
1. What are the respective unit underage (understocking) cost and overage (overstocking) cost for the retail store?
Question 2 options:pick one
a) |
Underage cost is $100/unit, Overage cost is $150/unit |
b) |
Underage cost is $150/unit, Overage cost is $150/unit |
c) |
Underage cost is $250/unit, Overage cost is $100/unit |
d) |
Underage cost is $350/unit, Overage cost is $100/unit |
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