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The Cover-up Drapery Company carries four types of fabric with the following characteristics: Type Annual Demand (yards) Item Cost per Yard 1 300 $20 2
The Cover-up Drapery Company carries four types of fabric with the following characteristics: Type Annual Demand (yards) Item Cost per Yard 1 300 $20 2 250 $18 3 100 $12 4 200 $8 Assume that the items are to be ordered together from the same supplier at an ordering cost of $20 per order and an annual carrying cost of 20 percent. Also assume 300 working days in a year. Click here for the Excel Worksheet File Use this file to solve problems Suppose you are the supplier of the Cover-up Drapery Company. It costs $2000 each time you change over your fabric-producing machine from one type to another (1, 2, 3, or 4)
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