Question
Question: Microsoft medical is a medical center in Seattle Washington it helps provide care to Seattle. Microsoft medical is struggling to contain costs and wishes
Question:
Microsoft medical is a medical center in Seattle Washington it helps provide care to Seattle.
Microsoft medical is struggling to contain costs and wishes to start with a study of ordering costs for hypodermic syringes.
Microsoft uses 150,000 syringes per year at a daily rate close enough to being constant to be treated as such.
It costs Microsoft $300 to place an order for syringes, process payments, and stock items when delivered.
It costs Microsoft ten cents per syringe per year to hold them in inventory.
Last, it takes Microsoft's supplier ten days to deliver syringes from the time an order is placed.
Using the figures above, calculate and report on the following items:
Optimal quantity to order with each order
How many orders to place per year
The reorder point (when inventory is lower to where an order needs to placed)
The total annual cost of ordering and maintaining the syringes. Not including the purchase price of syringes, Report solely on the cost of inventory management.
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