Question: Clap Off Manufacturing uses 2,000 switch assemblies per week and then reorders another 2,000. Assume the relevant carrying cost per switch assembly is $5.70 and

  • Clap Off Manufacturing uses 2,000 switch assemblies per week and then reorders another 2,000. Assume the relevant carrying cost per switch assembly is $5.70 and the fixed order cost is $610.

a. Calculate the carrying costs.

b. Calculate the restocking costs.

c. Calculate the economic order quantity.

d. Calculate the EOQ number of orders per year.

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