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The Crandall store begins each week with 480 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is

The Crandall store begins each week with 480 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $43 per year and the fixed order cost is $87.

What is the current total carrying cost? (Omit $ sign in your response.)

Carrying costs $

What is the current restocking cost? (Omit $ sign in your response.)

Restocking costs $

What is the economic order quantity? (Round the answer to the nearest whole number.)

EOQ

How many orders per year will Crandall place under the new policy? (Do not round intermediate calculations. Round the answer to the nearest whole number.)

Orders per year times

Should Crandall increase or decrease its order size?

  • Increase

  • Decrease

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