EOQ the Trektronics store begins each week with 450 phasers in stock. This stock is depleted each
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EOQ the Trektronics store begins each week with 450 phasers in stock. This stock is depleted each week and reordered. If the carrying cost per phaser is $37 per year and the fixed order cost is $125, what is the total carrying cost? What is the restocking cost? Should Trektronics increase or decrease its order size? Describe an optimal inventory policy for Trektronics in terms of order size and order frequency.
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The carrying costs are the average inventory times the cost of ...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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