Question: In Problem 12 2 in Chapter 12 Carpet City orders Soft

In Problem 12-2 in Chapter 12, Carpet City orders Soft Shag carpet from its own mill. Using the three-month moving average forecast of demand for month 9 as the monthly forecasts for all of next year, a production rate at the mill of 1200 yards per day (and the mill operates 260 days per year), an annual carrying cost of $0.63, the cost of setting up a production run and delivering the carpet to the store is $425, and a lead time to receive an order of 7 days, determine the optimal order size, the minimum total annual inventory cost, and the reorder point (given that Carpet City is open 360 days per year).
In Problem12-2

View Solution:

Sale on SolutionInn
  • CreatedApril 10, 2014
  • Files Included
Post your question