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Inventory, Economic Quantity Model

The Western Jeans Company purchases denim from Cumberland Textile Mills. The Western Jeans Company uses 235,000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is $250 per order. It costs Western $1.65 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.

If possible, use Excel 3M or QM for Windows.

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See the attached file. Direct calculations are provided in the Excel file which is attached.

Given the ...

Solution Summary

This solution illustrates how to compute the required calculations for the Texas Jeans Company. An Excel file is attached which provides the direct calculations. This response is about 70 words in length.