Question
Please provide answers to the following questions. Please write the formula of each question along with what numbers to plug in the formula and please
Please provide answers to the following questions. Please write the formula of each question along with what numbers to plug in the formula and please use excel.
1.) Suppose one of the suppliers to the Baylor Scott & White Health System offers terms of 4/10, net 30.
Alternative Potential Discount / Day Combinations (not exhaustive) | |||||
1% | 2% | 3% | 1% | 2% | 3% |
30 | 30 | 30 | 30 | 30 | 30 |
5 | 5 | 5 | 15 | 15 | 15 |
1.01% | 2.04% | 3.09% | 1.01% | 2.04% | 3.09% |
14.4 | 14.4 | 14.4 | 24 | 24 | 24 |
14.55% | 29.39% | 44.54% | 24.24% | 48.98% | 74.23% |
1% | 2% | 3% | 1% | 2% | 3% |
30 | 30 | 30 | 15 | 15 | 15 |
10 | 10 | 10 | 5 | 5 | 5 |
1.01% | 2.04% | 3.09% | 1.01% | 2.04% | 3.09% |
18 | 18 | 18 | 36 | 36 | 36 |
18.18% | 36.73% | 55.67% | 36.36% | 73.47% | 111.34% |
[a]. How many days does the business have to pay its bill from this supplier in order to getthe discount?
[b]. What is the approximate cost of the costly trade credit offered by this supplier?
Approximate % cost= discount percent/100-discount percent* 360/days credit received-discount period
Discount percent | |||||
Days credit received | |||||
Days of free trade credit | |||||
Periodic cost of trade credit | |||||
Number of discount periods per year | |||||
Approximate % cost |
2.)
Ordering costs (F)=$20
Annual usage in units (S)=55,000
Annual carrying costs (C)=10%
Purchase price per bottle (P)= $2.00
Days per year (W)=360
Safety stock (SF)=1000
a.) what is the economic order quantity?
b.) what is the maximum inventory for this medication?
c.) How often must the center order (in days)?
d.) how many orders of this pharmaceutical will need to be placed each year?
3.) Questions 3 and 4 are attached in the image
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