The Carpet Discount Store has annual demand of 10,000 metres of Super Shag carpet. The annual carrying

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The Carpet Discount Store has annual demand of 10,000 metres of Super Shag carpet. The annual carrying cost for a metre of this carpet is $1.25, and the ordering cost is $300. The carpet manufacturer normally charges the store $8 per metre for the carpet. However, the manufacturer has offered a discount price of $6.50 per metre if the store will order 5000 metres. How much should the store order, and what will be the total annual inventory cost for that order quantity?

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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