Should the company increase or decrease its order size

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Reference no: EM13273026

Captain Kirk's Cellular begins each month with 740 phones in stock. This stock is depleted each month and reordered. If the carrying cost per phone is $26 per year and the fixed order cost is $340, what is the total carrying cost? What is the restocking cost? Should the company increase or decrease its order size? Describe the optimal inventory policy for the company in terms of order size and frequency.

Reference no: EM13273026

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