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Determine the optimal order size and total inventory cost

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Discount Carpets manufactures Cascade carpet, which it sells in its adjoining showroom near the interstate. Estimated annual demand is 20,000 yards of carpet with an 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 the optimal order size, total inventory cost, length of time to receive an order, and maximum inventory level.

Reference no: EM13854955

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