If D=500,000 units per year, C= 40 percent of acquisition cost per unit per year, S= $59.50 per order, and ac = $5.50 per unit:

a. What is the EOQ? 4marks b. What is the TSC at the EOQ?

c. How much would the TSC increase if the order quantity must be 6,000 units because of a standard shipping container size?

d. Name and describe any three of each; costs that are reduced by holding inventories and those that are increased by holding inventories in a pharmacy department of the hospital.

e. With examples from the theatre department of a hospital, differentiate between a material with independent demand and a material with dependent demand.