>> Financial Econometrics
The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered. The carrying cost per phaser is $26 per year and the fixed order cost is $340.
What is the total carrying cost?
What is the restocking cost?
Calculate the economic order quantity.
Calculate the optimal number of orders per year.
Should the company increase or decrease its order size?