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a) Annual usage is 120,000 units b) The purchase price to MRHS is $500 per unit c) Carrying cost is 20% of inventory value d)

a) Annual usage is 120,000 units b) The purchase price to MRHS is $500 per unit c) Carrying cost is 20% of inventory value d) Fixed ordering costs are $600 e) They do not hold any safety stock. f) Assume 360 days per year g) Delivery lag time is 10 days.

What assumptions in the EOQ model might not be realistic in the health care setting?

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