Question
Jones Surgicenter uses 90,000 bags of IV solution annually.The optimal safety stock (which is on hand initially) is 1,000 bags.Each bag costs the center $1.50,
Jones Surgicenter uses 90,000 bags of IV solution annually.The optimal safety stock (which is on hand initially) is 1,000 bags.Each bag costs the center $1.50, inventory carrying costs are 20 percent, and the cost of placing an order with its supplier is $15.Assume 365 operational days per year.
a.What is the economic order quantity?Note:Format is x,xxx
b.What is the maximum inventory of IV solution bags?Note:Format is x,xxx
c.What is the center's average inventory of IV solution bags?Note:Format is x,xxx
d.How often must the center order(in days)?Note:Round DOWN to the nearest day for this problem.Format is: xx days
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