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Business, 18.06.2020 00:57 pimuang50

The I-75 Carpet Discount Store in North Georgia stocks carpet in its warehouse and sells it through an adjoining showroom. The store keeps several brands and styles of carpet in stock; however, it s biggest seller is Super Shag carpet. The store wants to determine the optimal order size and total cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store would also like to know the number of orders that will be made annually and the time between orders (i. e, the order cycle) given that the store is open 311 days annually. (a) Calculate the economic order quantity (EOQ) (namely how many orders to place very year in order to minimize total cost?) (b) The total annual inventory cost based on the optimal order quantity calculated from (a), (c) Calculate the number of order per year and the time between orders (i. e., the order cycle.

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