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5 * 2 . Schaan Healthcare Products is a distributor of medical / surgical productsin Saskatchewan. Schaan has a warehouse in Saskatoon that carries thousands
Schaan Healthcare Products is a distributor of medicalsurgical productsin Saskatchewan. Schaan has a warehouse in Saskatoon that carriesthousands of items, one of which is item # MicroTouchSurgical Glove, size The demand for this item in cases during aSeptember to November period was and respectively.Schaans inventory manager uses a threemonth moving average toforecast next months demand for the items. The threemonth movingaverage forecast for Decembers demand for size gloves is cases.Suppose that he uses the EOQ model to replenish this item. The surgicalgloves are purchased from Ansell Limited in cases of units at a costof $ per case. Use the threemonth moving average forecast forDecember ordering cost of $ per order, inventory holding cost rate of percent per year, and purchase lead time of two days. LOLO
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a Calculate the EOQ for this item rounded to a whole number
b Calculate the total annual holding and ordering cost if order quantity
is cases.
c Using lead time service level of percent and standard deviation of
monthly demand of cases, calculate the ROP rounded to a
whole number
d Suppose Schaan uses the fixedinterval model for replenishing this
item. Calculate the order quantity for this item rounded to a whole
number if it is ordered every two weeks, there is no on hand
inventory at reorder time, and the desired service level is percent
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