(Use this information to answer Questions 28-30.) 28) The XYZ Carpet Discount Store in Dallas stocks carpets in its warehouse and sells it through an...

 (Use this information to answer Questions 28-30.)

28)

 The XYZ Carpet Discount Store in Dallas stocks carpets in its warehouse and sells it through an adjoining showroom. The store keeps several brands and styles of carpets in stock; however, its biggest seller is the 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 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 for 310 days per year.

The optimal order quantity (EOQ) is:

a. 2000

b. 4898

c. 5420

d. 6928

e. 7200

29)

The optimal annual inventory cost (i.e., holding cost + ordering cost) is:

a. 1500

b. 588

c. 416

d. 400

 e. 208

Question 30

The optimum number of orders per year is:

a. 3

b. 4

c. 5

 d. 6

 e. 7