The Trektronics store begins each month with 775 phasers in stock. This stock is depleted each...

80.2K

Verified Solution

Question

Finance

The Trektronics store begins each month with 775 phasers instock. This stock is depleted each month and reordered. Thecarrying cost per phaser is $23 per year and the fixed order costis $495.

What is the total carrying cost? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)

Carrying costs           $

What is the restocking cost? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)

Restocking costs           $

Calculate the economic order quantity. (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

Economic order quantity

Calculate the optimal number of orders per year. (Do notround intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

Number of orders per year

Should the company increase or decrease its order size?

(Click to select)IncreaseDecrease

Answer & Explanation Solved by verified expert

3.7 Ratings (347 Votes)

Monthly demand M 775 units Carrying cost per phaser peryear C 23 Fixed order cost F 495Annual demand D 12 x M 12 x 775 9300 unitsWhat is the total carrying cost Do not roundintermediate See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

The Trektronics store begins each month with 775 phasers instock. This stock is depleted each month and reordered. Thecarrying cost per phaser is $23 per year and the fixed order costis $495.What is the total carrying cost? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)Carrying costs $What is the restocking cost? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)Restocking costs $Calculate the economic order quantity. (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)Economic order quantity Calculate the optimal number of orders per year. (Do notround intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)Number of orders per year Should the company increase or decrease its order size?(Click to select)IncreaseDecrease