2. I-75 Discount Carpets manufacturers Cascade carpet, which it sells in its adjoining showroom store near...
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2. I-75 Discount Carpets manufacturers Cascade carpet, which it sells in its adjoining showroom store near the interstate Estimated annual demand is 20,000 yards of carpet with the annual carrying cost of $2.75 per yard. The manufacturing facility operates the same 360 days the store is open and produces 400 yards of carpet per day. The cost of setting up the manufacturing process for a production run is $720. Determine 1) the optimal order size, 2) total inventory cost, 3) length of time to receive and order, and 4) maximum inventory level. 3. Extra Help for calculating solutions... Hints: C = $720 C= $2.75 per yard D = 20,000 yards 20,000 d = = 55.56 yards per day 360 p= 400 yards per day 2C D 2(720)(20,000) 55.56 V 2.75 1 - 400 = 3487.4 yards Wiley CD CQ TC "min (720)(20,000) 3487.4 (2.75)(3487.4) 55.6 400 = $8258.33 Production run 3487.4 400 = 8.72 days per order Maximum inventory level = 2. I-75 Discount Carpets manufacturers Cascade carpet, which it sells in its adjoining showroom store near the interstate Estimated annual demand is 20,000 yards of carpet with the annual carrying cost of $2.75 per yard. The manufacturing facility operates the same 360 days the store is open and produces 400 yards of carpet per day. The cost of setting up the manufacturing process for a production run is $720. Determine 1) the optimal order size, 2) total inventory cost, 3) length of time to receive and order, and 4) maximum inventory level. 3. Extra Help for calculating solutions... Hints: C = $720 C= $2.75 per yard D = 20,000 yards 20,000 d = = 55.56 yards per day 360 p= 400 yards per day 2C D 2(720)(20,000) 55.56 V 2.75 1 - 400 = 3487.4 yards Wiley CD CQ TC "min (720)(20,000) 3487.4 (2.75)(3487.4) 55.6 400 = $8258.33 Production run 3487.4 400 = 8.72 days per order Maximum inventory level =
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Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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