Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Trektronics store begins each week with 420 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is

The Trektronics store begins each week with 420 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $37 per year and the fixed order cost is $78.

What is the current total carrying cost?

Carrying costs $

What is the current restocking cost?

Restocking costs $

What is the economic order quantity? (Round your answer to 2 decimal places. (e.g., 32.16))

EOQ $
How many orders per year will Tektronics place under the new policy? (Round your answer to 2 decimal places. (e.g., 32.16))

Orders per year $
Should Trektronics increase or decrease its order size?
Decrease
Increase

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Authors: John C. Hull

7th Edition

0136015867, 9780136015864

More Books

Students also viewed these Finance questions

Question

=+What does this say for the future of the business case for CSR?

Answered: 1 week ago