Problem 17.14 – The Trektronics Store, Inventory Management and Economic Order Quantity EOQ

Essentials of Corporate Finance

Ross, Westerfield, and Jordan

10th Edition

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Difficulty – Medium

Determine the carrying cost and restocking cost of inventory given the carrying cost per unit, fixed order cost, and initial stock. Calculate the economic order quantity and optimal order size and frequency for a company. Decide whether to increase or decrease the order size based on these calculations.

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