Describe an optimal inventory policy for the company, Finance Basics

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Describe an optimal inventory policy for the company

Problem: The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered. If the carrying cost per phaser is $26 per year and the fixed order cost is $340, what is the total carrying cost? What is the restocking cost? Should the company increase or decrease its order size? Describe an optimal inventory policy for the company in terms of order size and order frequency.

Note: Please answer in proper manner and show all computations

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Finance Basics: Describe an optimal inventory policy for the company

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