Question: The Trektronics store begins each week with 420 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is
The Trektronics store begins each week with 420 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $37 per year and the fixed order cost is $78.
| What is the current total carrying cost? |
| Carrying costs | $ |
| What is the current restocking cost? |
| Restocking costs | $ |
| What is the economic order quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| EOQ | $ |
| How many orders per year will Tektronics place under the new policy? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Orders per year | $ |
| Should Trektronics increase or decrease its order size? | ||||
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