Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

-please help me solve this question- Jones Surgicenter uses 90,000 bags of IV solution annually. The optimal safety stock (which is on hand initially) is

-please help me solve this 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, inventory carrying costs are 20 percent, and the cost of placing an order with the supplier is $15.

a. What is the economic order quantity?

b. What is the maximum inventory of IV solution bags?

c. What is the center's average inventory of IV solution bags?

d. How often must the center order (in days)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Financial Planning

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

14th edition

978-1305887725, 1305887727, 1305636619, 978-1305636613

More Books

Students also viewed these Finance questions

Question

List f our sourc es of c onflict. (p. 3 62)

Answered: 1 week ago