Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The assignment will provide practical knowledge in determining safety stock calculations so that healthcare stock items can be available when needed at the point of
The assignment will provide practical knowledge in determining safety stock calculations so that healthcare stock items can be available when needed at the point of service. Use the Quantitative Inventory Analysis Template for the following problem: Hospital purchasing agent Abby Smith needs to order examination gloves for the hospital. Currently, she orders boxes of gloves whenever she thinks there is a need. Abby has heard that there is a better way to do this and wants to use economic order quantity to determine how much to order and when to order. She collects the following information. Cost of the gloves: $ per box Carrying costs: or $ per box Cost of ordering: $ per order Lead time: days Annual demand: boxes per year a Tab Basic EOQ Economic Order Quantity What quantity should Abby be ordering? Prove that your order quantity is "better" than Abby's by graphing ordering costs, holding costs, and total costs for and boxes. b Tab ROP no SS Reorder Point No Safety Stock How often will Abby need to order? About how many days will there be between orders? c Tab ROP w SS Reorder Point No Safety Stock Assuming that Abby is not worried about safety stock, when should she place this order? d Tab ROP w SS Reorder Point with Safety Stock Abby decides she will be happy if the probability of a stockout is percent. How much safety stock should Abby
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started