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The Trektronics store begins each month with 735 phasers in stock. This stock is depleted each month and reordered. The carrying cost per phaser is
The Trektronics store begins each month with 735 phasers in stock. This stock is depleted each month and reordered. The carrying cost per phaser is $26 per year and the fixed order cost is $365 a. What is the total carrying cost? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the restocking cost? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Calculate the economic order quantity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Calculate the optimal number of orders per year. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. Should the company increase or decrease its order size? a. Carrying costs b. Restocking costs c. Economic order quantity d. Number of orders per year e. Order size
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