Determine the optimal number of yards of material sofaworld


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.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determine the optimal number of yards of material sofaworld
Reference No:- TGS0640219

Expected delivery within 24 Hours