Sophie Co. uses 12,000 bolts per month then reorders another 12,000. The carrying cost per...
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Sophie Co. uses 12,000 bolts per month then reorders another 12,000. The carrying cost per bolt is $3, and the fixed cost per order is $1,100.
What are the companys carrying costs per year?
What are the companys restocking costs per year?
Instead of their current policy, what quantity (Q*) should the company order each time?
Instead of their current policy, how many orders should the company have each year?
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