Question
i need help with a case study 1. What is the economic order quantity for DKU Number 53104 if the forms are ordered from supply
i need help with a case study
1. What is the economic order quantity for DKU Number 53104 if the forms are ordered from supply A? From supplier B?
2. What is the reorder point from each supplier assuming no safety stocks are held?
3. Calculate the total inventory cost (the cost of ordering plus the carrying costs) under each supplier that the hospital would incur under each supplier. Based on the information developed thus far, which supplier should the hospital use?
4. Now assume that the hospital currently carries a safety stock of two items to protect itself from stockouts. However if it decides to switch to supplier B, the hospital would need to have a safety stock of six units to reflect Supplier B's longer lead time. What will be the inventory management costs from each supplier?
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