The Trektronics store begins each month with 950 phasers in stock. This stock is depleted each month
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The Trektronics store begins each month with 950 phasers in stock. This stock is depleted each month and reordered. If the carrying cost per phaser is $32 per year and the fixed order cost is $540, what is the total carrying cost? What is the restocking cost? Should the company increase or decrease its order size? Describe an optimal inventory policy for the company in terms of order size and order frequency.
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Related Book For
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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