Question: Bryson Carpet Mills produces a variety of different carpets Changing
Bryson Carpet Mills produces a variety of different carpets. Changing from production of one carpet to another involves a setup cost of $1,000. One particular carpet cost $5/yard to produce. Annual demand for this style is 120,000 yards. Bryson Mills produces carpet 300 days per year. The production process is most efficient when 4,000 yards/day are produced. Inventory carrying cost is estimated at 20% annually. What should be the production order quantity?
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