Johnson Memorial Hospital is a 230-bed not-for-profit acute care hospital. The financial manager of the hospital is applying economic ordering quantity (EOQ) to manage the hospitals inventory. For one specific blood product, there are two suppliers A and B. Data of the two supplier, together with the inventory carrying cost and other data is as followed: Expected Annual Usage 92 Units

Inventory Carrying Cost 25%

	Supplier A	Supplier B
Unit Cost	$66	$60
Ordering Cost	$50	$75

1) Compare the economic ordering quantity and how many orders to be placed each year for supplier A and supplier B. (5 points) 2) Compare the total inventory cost with supplier A and supplier B.