The Crandall store begins each week with 300 phasers in stock. This stock is depleted each week

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The Crandall store begins each week with 300 phasers in stock. This stock is depleted each week and reordered. If the carrying cost per phaser is $38 per year and the fixed order cost is $75, what is the total carrying cost? What is the restocking cost? Should Crandall increase or decrease its order size? Describe an optimal inventory policy for Crandall in terms of order size and order frequency.

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Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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