Question

The Western Jeans Company purchases denim from Cumberland Textile Mills. The Western Jeans Company uses 35,000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is $500 per order. It costs Western $0.35 per yard annually to hold a yard of denim in inventory. Determine the optimal number of yards of denim the Western Jeans Company should order, the minimum total annual inventory cost, the optimal number of orders per year, and the optimal time between orders.

TOTAL ANNUAL INVENTORY COST
SUMMARY
Q = ORDER QUANTITY =
AVERAGE INVENTORY =
NUMBER OF ORDERS =
CARRYING COST =
ORDERING COST =
TOTAL COST
OPTIMAL TIME BETWEEN ORDERS =
				TOTAL ANNUAL INVENTORY COST
				SUMMARY
				Q = ORDER QUANTITY =
				AVERAGE INVENTORY =
				NUMBER OF ORDERS =
				CARRYING COST =			0
				ORDERING COST =
				TOTAL COST
				OPTIMAL TIME BETWEEN ORDERS =

Answer 1

Answer with working notes is given below