Question
The Trektronics store begins each week with 320 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is
The Trektronics store begins each week with 320 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $27 per year and the fixed order cost is $63.
What are the current total carrying costs?
What are the current restocking costs?
What is the economic order quantity?
Should Trektronics increase or decrease its order size?
How many orders per year will Tektronics place under the new policy?
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The Option Trader Handbook
Authors: George Jabbour
2nd Edition
0470481617, 978-0470481615
