Back to the I-75 Carpet Discount Store example … We now assume that the store has its own manufacturing facility in which it p

Back to the I-75 Carpet Discount Store example … We now assume that the store has its own manufacturing facility in which it produces Super Shag carpet. We will now further assume that the ordering cost, Co, is the cost of setting up the production process to make Super Shag carpet. Recall that Cc = $0.75 per yard and D = 10,000 yards per year. The manufacturing facility operates the same days the store is open (311 days) and produces 150 yards of Super Shag carpet per day. Calculate the:

a) optimal order size

b) total minimum annual inventory cost

c) length of time to receive an order

d) number of orders per year