Clapper manufacturing uses 2000 switch assemblies per week


Question: Clapper Manufacturing uses 2,000 switch assemblies per week and then reorders another 2,000. If the relevant carrying cost per switch assembly is $40, and the fixed order cost is $1,100, is Clapper's inventory policy optimal? Why or why not?

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Finance Basics: Clapper manufacturing uses 2000 switch assemblies per week
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