The Trektronics store begins each week with 450 phasers in stock. This stock is depleted each week
Question:
The Trektronics store begins each week with 450 phasers in stock. This stock is depleted each week and reordered. If the carrying cost per phaser is $34 per year and the fixed order cost is $130, 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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The carrying costs are the average inventory times the cost of car...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
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