Question
USING EXCEL Brooke Army Medical Center dispenses 250,000 bottles of brand name pharmaceutical annually.The optimal safety stock (which is on hand initially) is 1,000 bottles.Each
USING EXCEL
Brooke Army Medical Center dispenses 250,000 bottles of brand name pharmaceutical annually.The optimal safety stock (which is on hand initially) is 1,000 bottles.Each bottle costs the center $10, inventory carrying costs are 30 percent, and the cost of placing an order with its supplier is $175.Orders can be placed only in multiples of 100 units.
a. What is the economic order quantity?
b. How many orders will be placed annually?
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
