The I-75 Carpet Discount Store in North Georgia stocks carpet in its warehouse and sells it through an adjoining showroom. The store keeps several brands and styles of carpet in stock; however, its biggest seller is Super Shag carpet. The store wants to determine the optimal order size and total inventory cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle) given that the store is open every day except Sunday, Thanksgiving Day, and Christmas Day (which is not on a Sunday) (311 days/yr). Determine the following: A. Determine the optimal order quantity. B. Determine the number of orders per year. C. Determine the time between orders.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The I-75 Carpet Discount Store in North Georgia stocks carpet in its warehouse and sells it through an adjoining showroom. The store keeps several brands and styles of carpet in stock; however, its biggest seller is Super Shag carpet. The store wants to determine the optimal order size and total inventory cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle) given that the store is open every day except Sunday, Thanksgiving Day, and Christmas Day (which is not on a Sunday) (311 days/yr). Determine the following:
A. Determine the optimal order quantity.
B. Determine the number of orders per year.
C. Determine the time between orders.
D. Determine the annual set-up cost.
E. Determine the annual holding cost.
F. What is the total inventory cost of the Q* system?

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The 1-75 Carpet Discount Store in North Georgia stocks carpet in its warehouse and sells it through an adjoining
showroom. The store keeps several brands and styles of carpet in stock; however, its biggest seller is Super Shag
carpet. The store wants to determine the optimal order size and total inventory cost for this brand of carpet given an
estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of
$150. The store would also like to know the number of orders that will be made annually and the time between orders
(i.e., the order cycle) given that the store is open every day except Sunday, Thanksgiving Day, and Christmas Day
(which is not on a Sunday) (311 days/yr). Determine the following:
A. Determine the optimal order quantity.
B. Determine the number of orders per year.
C. Determine the time between orders.
D. Determine the annual set-up cost.
E. Determine the annual holding cost.
F. What is the total inventory cost of the Q* system?
Transcribed Image Text:The 1-75 Carpet Discount Store in North Georgia stocks carpet in its warehouse and sells it through an adjoining showroom. The store keeps several brands and styles of carpet in stock; however, its biggest seller is Super Shag carpet. The store wants to determine the optimal order size and total inventory cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle) given that the store is open every day except Sunday, Thanksgiving Day, and Christmas Day (which is not on a Sunday) (311 days/yr). Determine the following: A. Determine the optimal order quantity. B. Determine the number of orders per year. C. Determine the time between orders. D. Determine the annual set-up cost. E. Determine the annual holding cost. F. What is the total inventory cost of the Q* system?
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