Question: The Trektronics store begins each week with 450 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser
The Trektronics store begins each week with 450 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $41 per year and the fixed order cost is $130. a) What is the total carrying cost? b) What is the total restocking (ordering) cost? c) Should Trektonics increase or decrease its order size? d) Calculate the Economic Order Quantity. e) Describe the optional inventory policy in terms of order size and order frequency.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
