Q d) Time between orders (cycle time): T = Eyear e) Reorder point: ROP = d x L demand per day: d: D Number of working days in a year Example 6.1: Carpet Discount Store in KL stocks several brands of carpets in its store. However its biggest selling brand is Super Shag. The cost of Super Shag is RM50 per yard. The store wants to determine the optimal order size and the total inventory cost for this brand of carpet. The annual demand for this type of carpet is 10000 yards of carpet, annual holding cost is RMO.75 per yard and the ordering cost is RM150 per order. The store also wants to know the number of orders given that the store is open 311 days annually. Lead time 2 days. Solution: Optimal order size: Total annual inventory cost: Number of orders per year: Order cycle time: Reorder point: QR