# economic order

## Project Description:

did i do this right?
find the eqq and tc assuming the following:
p = \$5
d= \$20000÷365=54,79 or 55
o= \$10
i= \$19%
h=\$75

qe= √2do
ip+2h =447 units
tc=pd+d
qe o +(hqe+ ip qe)
2

gives the constant demand for the product, how many orders will be made in 1 year? 44.7 orders
give the demand and the lag time of 5 days between order and receipt, how many units will be in stock when you place an order? 274 units
gives the constant demand, how many days are between order? 3.2
what is the carrying cost? \$447.00
what is the opportunity cost? \$111.75
what is the cost of the average inventory? \$1117.50
what is the volume of the average inventory? 223.5 units
the hospital has only \$90,000 budgeted for the product. what is the new price the hospital must negotiate with the vendor to make budget? \$4.40
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Price Type: Negotiable

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