Inventory management - EOQ

Aug 2nd, 2016
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This document contains the solution to float calculation problem : The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered.

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14.EOQ. The Trektronics store begins each month with 740 phasersin stock. This stock is depleted each month and reordered. If thecarrying cost per phaser is $26 per year and the fixed order costis $340, what is the total carrying cost? What is the restockingcost? Should the company increase or decrease its order size?Describe an optimal inventory policy for the company in termsof order size and order frequency.Answer 14Relevant informationTrektronics store begins each month with 740 phasers in stock.Carrying cost per phaser = $ 26 per yearFixed order cost = $ 340Total no. of order

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