Find the EOQ (Qe) and TC assuming the following:

P=$5

D=20,000

O= $10

I= 10%

H= $.75

• Given a constant demand for the product, how many orders will be made in 1 year?
• Given a constant demand and lag time of 5 days between order and receipt, how many units will be in stock when you place the order?
• Given a constant demand, how many days are in between orders?
• What is the carrying costs?
• Opportunity costs?
• What is the costs of average inventory?
• Volume of average inventory?
• The hospital has only $90,000 budgeted for the product. What is the new price the hospital must negotiate with the vendor to make budget?