The Trektronics store begins each week with 300 phasers in stock. This stock is

Question

The Trektronics store begins each week with 300 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $25 per year and the fixed order cost is $60.

What is the economic order quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The Trektronics store begins each week with 300 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $25 per year and the fixed order cost is $60.

Explanation / Answer

carrying cost 25 ordering cost 60 EOQ 273.64 (((2*300*52*60)/(25))^(1/2) decrease no of orders in a year(52*300)/273.64 57.01

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