The Trektronics store begins each week with 450 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $41 per year and the fixed order cost is $130.
What is the total carrying cost?
What is the restocking cost?
Should Trektronics increase or decrease its order size?
Describe an optimal inventory policy for Trektronics in terms of irder size and order frequency.