Question: Question 1 The Techtronic s store begins each month with 7 4 0 phasers in stock. This stock is depleted each month and reordered. If

Question

1

The Techtronic

s store begins each month with

740

phasers in stock. This stock is depleted each month and reordered. If the carrying cost per phaser is RM

26

per year and the fixed cost is RM

340,

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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