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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.

Requirement 1:

What is total carrying cost?

Requirement 2:

What is restocking cost?

Requirement 3:

find out economic order quantity.

Requirement 4:

find out optimal number of orders per year.

Requirement 5:

Should the company increase or decrease its order size? Could you describe how to find out these?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M94298

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