Problem1. The Trektronics store begins each month with 740 phases in the stock. This stock is depleted each month as well as reordered. The carrying cost per phase is $26 each year and the fixed order cost is $340.
What is total carrying cost?
What is restocking cost?
find out economic order quantity.
find out optimal number of orders per year.
Should the company increase or decrease its order size? Could you describe how to find out these?