#5: Week 5 Assignment Week 5 (Healthcare Analytics)

Provide solutions in Excel Worksheet.

The materials manager of an ambulatory surgery center is looking to determine the appropriate order quantity and reorder points for customized surgical kits. A custom surgical kit costs $50 to order, and the annual carrying cost is 10 percent of the product cost. The annual demand for surgical kits is 3,600 and the purchase price is $200. The lead time for delivery is two weeks.

What is the economic order quantity for surgical kits? How does this affect revenues?

What is the length of the order cycle? Should this be adjusted?

What is the total inventory management cost? What is the investment cost for surgical kits?

Assuming the surgery center would like to hold fifty kits as safety stock, what is the reorder point?

Your paper must include:

A title page and reference page formatted according to APA

At least one citation per page.

A minimum of three outside references

A minimum of three pages of content formatted according to APA.