Question: Clap Off manufacturing uses 1,600 switch assemblies per week and then reorders another 1,600. If the relevant carrying cost per switch assembly is $4 and

Clap Off manufacturing uses 1,600 switch assemblies per week and then reorders another 1,600. If the relevant carrying cost per switch assembly is $4 and the fixed order cost is $650, is the company’s inventory policy optimal? Why or why not?

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