Please do the part 2 Only, the previous expert did this question only for part but didn't do the part 2, and I just need part 2 now.

show works and details.

Answer for part 1:

The lead time to receive an order for a popular 10x12 area rug at Aladdin's Carpets (AC) is 10 days. Demand for the rug is constant at 80 units per month. AC purchases the rugs for $250 per unit and incurs a fixed cost of $1,200 each time it places an order irrespective of the number of units ordered. The annual holding cost is 40% of the procurement cost per unit. Assume that there are 7 days in a week, 52 weeks in a year, and 364 days in a year. Enter all computations rounded to two decimal places. Part 1: a) Compute the optimal order quantity: units. b) Compute the optimal total annual relevant cost: (inventory cost + ordering cost): $ c) Compute the average inventory: units. d) Compute the average time a unit spends in inventory in days: days. Part 2: Suppose that AC is considering switching to a supplier which charges a higher price per unit but has better information integration capabilities making ordering much easier. This switch will increase the procurement cost per unit to $260 but will reduce the fixed order cost to $600. e) Compute the optimal total annual cost including procurement cost for the new supplier. New optimal total annual cost = $ f) Compute the optimal total annual cost including procurement cost for the new supplier. New optimal total annual cost = $ g) Which supplier should AC choose based on the total annual cost including procurement Current Supplier New Supplier Economic Order Quantity is the number of unit that is added to the inventory which minimize the total inventory cost. It maintain a balance between ordering costs and carrying costs. LT = 10 days demand = 80 units/month D = monthly demand x 12 months - 80x12 - 960 units /year cost = $250/unit al S = $1200/order H = 40% of cost - 400 x 250 = $100/unit/year d = D 364 days 460 364 2.64 cenits /day a) cog=2DS . 2 x 960 X 1200 11 V 100 = 151.789 or 151 79 units) duswer 960 b) Total cost - Holding cost & ordering cost TC = (BxH) + ( 3 ) (151379 x 100) + ( ona x1200) - 1589.50 + 1589.43 - $ 15118093 Answer 2 151:19 15.79 X 1207 c) Aug. inventory & - 51:19 2 = 15.895 15.895 or of 75.90 units Duswer d = 151.79 2.64 = 57.50 days