Suppose your department uses medical supplies in the provision of services. The supplies cost $7 per box

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Suppose your department uses medical supplies in the provision of services. The supplies cost $7 per box and the department uses 5,000 boxes per year. Storage and financing costs are estimated at $50 per box per year, and it requires 1 hour of staff time to place each order. Staff are paid $15 per hour on average. What is the optimal amount of medical supplies to order at one time?

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Accounting Fundamentals For Health Care Management

ISBN: 9781284265200

4th Edition

Authors: Steven A. Finkler, David M. Ward, Thad Calabrese

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