PLEASE HELP WITH THE QUESTION ABOVE

Centura Health owns a group of hospitals with locations surrounding the mid-west USA. You've been hired by Centura (on contract) to assess one of their hospitals that is struggling with their annual inventory costs. You've done a Pareto analysis on the most frequently ordered and stocked medical supplies for this hospital, and you've determined that the IV kit is your starting point for analysis. You've collected the following info and data pertaining to the ordering, consumption, and facility costs. Current Batch Size when kits are ordered: 5500 Weekly consumption of kits: 350 Unit cost ($/ kit) $3.00 Warehouse annual operating and storage cost factor: 3% Cost of capital: 22% Purchasing \& Administration cost per order: $95.00 Supplier lead time (weeks): 1.56:30 p.m. The holding cost is A dollars (\$) per unit per year. The optimal order quantity (EOQ), rounded to the nearest whole integer, for this hospital should be A) kits per order. The minimum annual total cost, rounded to the nearest whole integer for carrying this IV kit if the EOQ model is followed is A) dollars per year. Using the calculated EOQ (from above), you calculate that the average flow time, rounded to 1 decimal place, for which a IV kit will spend in inventory is A weeks. The USA governing board of medical equipment has just mandated that IV kits can NOT stay in storage longer than 2 weeks. For this hospital to avoid scrapping expired IV kits, you recalculate the order quantity (Q) to be ... (HINT: the average flow time for a IV kit in inventory must not exceed 2 weeks.) Using the new order quantity (Q) considering shelf life limit of 2 weeks, you calculate the new total annual inventory cost for carrying the IV kits to be ... (rounded to the nearest whole integer) A dollars per year The operations manager for Centura hears the news about the new shelf life regulation and is concerned that this is going to cost the hospital a significant amount more per year to manage the inventory dynamics of the IV kits. You tell the manager to ("Relax") or ("Panic") based on the difference in annual carrving cost. (lie. The operations manager does not understand. So you show him the ... A curve from your studies in operations management of PQE, and explain that the low point (minimum) has a span that covers a broad range of order quantity that has minimal affect on total carrying cost! :) Ignoring safety stock, the ROP for these kits should be set to (round off the answer to the safest direction). A Kits remaining on the shelf