Bryson Carpet Mills produces a variety of different carpets. Changing from production of one carpet to another
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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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Related Book For
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley
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