The maternity ward of a hospital sends one baby blanket home with each newborn baby. The following

Question:

The maternity ward of a hospital sends one baby blanket home with each newborn baby. The following information is available for the baby blankets:image text in transcribed

a. As the new maternity ward manager, you decide to improve the current ordering methods used for items which are stocked in the maternity ward. Calculate the economic order quantity for baby blankets.

b. Baby blankets are currently ordered in quantities of 200. How much would the maternity ward save in total annual relevant costs by changing to the EOQ?

c. You decide that a fixed-order quantity system will be used for ordering the blankets. Describe and calculate what must be known for implementing such a system.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: