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Clap Off Manufacturing EOQ

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Clap Off Manufacturing uses 2300 switch assemblies per week and then reorders another 2300. If the relevant carrying cost per switch assembly is $10 and the fixed order cost is $800, is Clap Off's inventory policy optimal? Why or why not?

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Solution Summary

The solution determines whether Clap Off's inventory policy optimal.

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No. Clap Off's inventory policy is not optimal. In an optimal inventory ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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