1. What is the economic ordering quantity for SKU Number 53104 if the forms are ordered from Supplier A? From Supplier B? Round your answers up to the next whole unit. 2. How many orders should be placed each year if the hospital buys from Supplier A? If it buys from Supplier B? 3. Calculate the total inventory cost (the cost of ordering plus the cost of carrying inventories) that the hospital would incur under each supplier. On the basis of the information developed, which supplier should the hospital use?

Data:

Supplier	Supplier
		A	B
Annual usage		92	92
Purchase price		$66	$60
% Carrying cost		25.00%	25.00%
Delivery time (days)		1	3
Fixed cost per order		$50	$75
Days per year		360	360
Safety stock quantity		2	6
Discount %		N/A	10.00%
Discount quantity		N/A	92
Order quantity		24	30