Carpet City orders Soft Shag from the Carpet City Mill. The production rate at the mill is $1200$ yards per day, and the mill operates $260$ days per year. The annual carrying cost is $$0\mathrm{.}63,$ the order cost is $$425,$ and a lead time for receiving an order is $7$ days.

b$)$ Compute the optimal order quantity, the total monthly and annual minimum inventory cost, and the reorder point.Question $2$

Carpet City orders Soft Shag from the Carpet City Mill. The production rate at the mill is $1200$ yards per day, and the mill operates $260$ days

per year. The annual carrying cost is $$0\mathrm{.}63,$ the order cost is $$425,$ and a lead time for receiving an order is $7$ days.

a$)$ Use a $3-$month moving average to forecast a value for Month $9.$ Use this forecast as the demand, with a daily demand assuming this is for

September $---$ a $30-$day month.

b$)$ Compute the optimal order quantity, the total monthly and annual minimum inventory cost, and the reorder point.