Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Trektronics store begins each week with 500 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is

The Trektronics store begins each week with 500 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $45 per year and the fixed order cost is $395. a. What are the current carrying costs? (Do not round intermediate calculations.)

b. What are the order costs? (Do not round intermediate calculations.)

c. Calculate the economic order quantity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

d. Should the company increase or decrease its order size?

e. How many orders per year will the company place under the new policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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

Students also viewed these Finance questions