c. The Sofaworld Company purchases upholstery material from Barrett Textiles. The company uses 45,000 yards of material per year to make sofas. The cost of ordering material from the textile company is $1,500 per order. It costs Sofaworld $0.70 per yard annually to hold a yard of material in inventory. Determine the optimal number of yards of material Sofaworld should order, the minimum total inventory cost, the optimal number of orders per year, and the optimal time between orders if Sofaworld operates the whole year except Sundays.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Question C

C. The Sofaworld Company purchases upholstery material from Barrett Textiles. The
company uses 45,000 yards of material per year to make sofas. The cost of ordering
material from the textile company is S1,500 per order. It costs Sofaworld $0.70 per
yard annually to hold a yard of material in inventory. Determine the optimal number
of yards of material Sofaworld should order, the minimum total inventory cost, the
optimal number of orders per year, and the optimal time between orders if Sofaworld
operates the whole year except Sundays.
Transcribed Image Text:C. The Sofaworld Company purchases upholstery material from Barrett Textiles. The company uses 45,000 yards of material per year to make sofas. The cost of ordering material from the textile company is S1,500 per order. It costs Sofaworld $0.70 per yard annually to hold a yard of material in inventory. Determine the optimal number of yards of material Sofaworld should order, the minimum total inventory cost, the optimal number of orders per year, and the optimal time between orders if Sofaworld operates the whole year except Sundays.
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