Question
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.)
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