Question
Problem 17-14 EOQ [LO 3] The Trektronics store begins each month with 1,250 phasers in stock. This stock is depleted each month and reordered. The
Problem 17-14 EOQ [LO 3] The Trektronics store begins each month with 1,250 phasers in stock. This stock is depleted each month and reordered. The carrying cost per phaser is $38 per year and the fixed order cost is $570. (Enter your answer as directed, but do not round intermediate calculations.)
Requirement 1: What is the total carrying cost? Carrying costs $_____________
Requirement 2: What is the restocking cost? Restocking costs $_____________
Requirement 3: Calculate the economic order quantity. (Round your answer to 2 decimal places (e.g., 32.16).) Economic order quantity ___________
Requirement 4: Calculate the optimal number of orders per year. (Round your answer to 2 decimal places (e.g., 32.16).) Number of orders per year____________
Requirement 5: Should the company increase or decrease its order size?
(Click to select)
Decrease
Increase
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