Problem:
Redan Manufacturing uses 3,300 switch assemblies per week and then reorders another 3,300. The relevant carrying cost per switch assembly is $14.00, and the fixed order cost is $1,650.
Requirement:
Question 1: What is the current carrying cost?
Question 2: What is the order cost?
Question 3: Calculate the economic order quantity.
Note: Provide support for your rationale.