Problem
Hunter Region Electronics uses 4,000 switch assemblies per week and then reorders another 4,000. Assume the relevant carrying cost per switch assembly is $8.90 and the fixed order cost is $650. Note: there are 52 weeks in a year
i. Calculate the carrying costs.
ii. Calculate the restocking costs per year.
iii. Calculate the economic order quantity pear year.
iv. Calculate the optimal number of orders per year.