Question
13. Vulcan Hospital buy 20.000 disposal surgical staplers per year. The hospital pays $40 per staplers. Each time they place an order, it takes a
13. Vulcan Hospital buy 20.000 disposal surgical staplers per year. The hospital pays $40 per staplers. Each time they place an order, it takes a paid clerk $5 worth of time to process the order. The delivery cost is $20 per order. The hospital earns an average of 6% interest on invested money. The hospital pays $ 1.5 per devices for storage and has an insurance policy worth of $2 per devices per year. Please calculate Economic Order Quantity for disposal surgical staplers. EOQ Formula N = Total number of units of inventory ordered per year C = Annual cost to carry one unit of inventory O = The cost related to placing one order
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