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The Cloth Banaza sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in

The Cloth Banaza sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming inspection of the denim is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing officer of the Cloth Banaza hAnnual demand for denim cloth
29,250 yards
Ordering cost per purchase order
$195
Carrying cost per year
20% of purchase costs
Safety-stock requirements
None
Cost of denim cloth
$15 per yard
The purchasing lead time is 2 weeks. The Cloth Banaza is open 250 days a year (50 weeks for 5 days a week).as collected the following information

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