EOQ Redon Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant

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EOQ Redon Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant carrying cost per switch assembly is $10, and the fixed order cost is $2,400, is Redon’s inventory policy optimal? Why or why not?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: May 09, 2011 06:18 AM

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EOQ Redon Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant

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The carrying costs are the average inventory times the cost of carrying an individual unit so Ca...View the full answer

Fundamentals of Corporate Finance

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