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Determine the optimal number of yards of denim

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Reference no: EM132571363

The Western Jeans company purchases denim from Cumberland Textile Mills. The Western company uses 35 000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is RM500 per order. It costs Western RM0.35 per yards annually to hold a yard of denim in inventory.

Question 1: Determine

  1. The optimal number of yards of denim the Western Company should order
  2. The minimum total inventory cost.
  3. The optimal number of orders per year.
  4. The optimal time between order.

Reference no: EM132571363

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