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Wood County Hospital consumes 1 0 0 boxes of bandages per week. The price of bandages is $ 3 5 per box, and the hospital
Wood County Hospital consumes boxes of bandages per week. The price of bandages is $ per box, and the hospital operates weeks per year. The cost of processing an order is $ and the cost of holding one box for a year is percent of the value of the material.
A The hospital orders bandages in lot sizes of boxes. What extra cost does the hospital incur, which it could save by using the EOQ method?
B Demand is normally distributed, with a standard deviation of weekly demand of boxes. The lead time is weeks. What safety stock is necessary if the hospital uses a continuous review system and a percent cycleservice level is desired? What should be the reorder point?
C If the hospital uses a periodic review system, with P weeks, what should the target inventory level, T
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