If the carrying cost per phaser is 26 per year and the


Question - 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.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: If the carrying cost per phaser is 26 per year and the
Reference No:- TGS02805910

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)