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A hospital uses an average of 1,215 bags of a specialy type of drug a year. Preparing an order and receiving a shipment costs $10
A hospital uses an average of 1,215 bags of a specialy type of drug a year. Preparing an order and receiving a shipment costs $10 per order. Annual carrying costs are $75 per bag. a. Determine the economic order quantity. (Round your final answer to the nearest whole number.) Economic order quantity bags b. What is the average number of bags on hand? (Round your final answer to the nearest whole number.) Average number of bags c. How many orders per year will there be? (Round your final answer to the nearest whole number.) Number of orders per year d. Compute the annual total ordering and holding costs. (Round your final answer to the nearest whole number. Omit the "\$" sign in your response.) Total cost $ e. If annual holding costs were to increase by $9 per bag, how much would that affect the minimum total annual cost? (Round your intermediate calculations to 2 decimal places and final answer to 2 decimal places. Omit the "\$" sign in your response.) Increase by $
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