Question
1. EOQ. Yorktown Electronics uses 975 switch assemblies per week and then reorders another 975. If the relevant carrying cost per switch assembly is $6.25
1. EOQ. Yorktown Electronics uses 975 switch assemblies per week and then reorders another 975. If the relevant carrying cost per switch assembly is $6.25 and the fixed-order cost is $430, is Yorktown's inventory policy optimal? Why or why not?
2. EOQ. The Three Springs Honey store begins each month with 735 bottles in stock. This stock is depleted each month and reordered. If the carrying cost per bottle is $26 per year and the fixed-order cost is $365, what is the total carrying cost? What is the restocking cost? Should Three Springs Honey increase or decrease its order size? Describe an optimal inventory policy for Three Springs Honey in terms of order size and order frequency.
Please help me to solve 1 and 2 questions, using the finance calculator.
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