The Trektronics store begins each month with 900 phasers in stock. This stock is depleted each month
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The Trektronics store begins each month with 900 phasers in stock. This stock is depleted each month and reordered. If the carrying cost per phaser is $38 per year and the fixed order cost is $530, 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
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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