13.4. The Sofaworld Company purchases upholstery material fromBarrett Textiles. The company uses 45,000 yards of material per yearto make sofas. The cost of ordering material from the textile companyis $1500 per order. It costs Sofaworld $0.70 annually to hold a yard ofmaterial in inventory. Determine the optimal number of yards of mate-rial Sofaworld should order, the minimum total inventory cost, the opti-mal number of orders per year, and the optimal time between orders.

Given: Annual demand(D) = 45,000 Ordering Cost (S) =$ 1500 per order Holding cost (H) = $ 0.70

Answered: 13.4. The Sofaworld Company purchases…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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