EOQ Redon Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant
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EOQ Redon Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant carrying cost per switch assembly is $10, and the fixed order cost is $2,400, is Redon’s inventory policy optimal? Why or why not?
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The carrying costs are the average inventory times the cost of carrying an individual unit so Ca...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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