The Trektronics store begins each week with 200 phasers in stock. The stock is depleted each week and reordered. The carrying cost per phaser is $37 per year and the fixed order cost is $45.
What is the current total carrying cost?
What is the current restocking cost?
What is the economic order quantity (EOQ)?
How many orders per year will Trektronics place under the new policy?