2. 12.

EOQ [LO 20.4] 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 $34 per year and the fixed order cost is

$130, 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.