Fogle Manufacturing uses 2,590 switch assemblies per week and then reorders another 2,590. If the relevant carrying

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Fogle Manufacturing uses 2,590 switch assemblies per week and then reorders another 2,590. If the relevant carrying cost per switch assembly is $5.75 and the fixed order cost is $740, is the company’s inventory policy optimal? Why or why not?

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Corporate Finance

ISBN: 978-1259918940

12th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Dec 30, 2019 03:57 AM

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Fogle Manufacturing uses 2,590 switch assemblies per week and then reorders another 2,590. If the relevant carrying

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

Corporate Finance

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