Grant County Hospital consumes 2,000 boxes of 45 clamps per week. The price of clamps is $76
Question:
a. The hospital orders the 45 clamps in lot sizes of 1,000 boxes. What extra cost does the hospital incur that it could save by using the EOQ method?
b. Demand is normally distributed, with a standard deviation of weekly demand of 100 boxes. The lead time is two weeks. What safety stock is necessary if the hospital uses a continuous-review system and a 99-percent cycle-service level is desired? What should be the reorder point?
c. If the hospital uses a periodic-review system, with P = two weeks, what should be the target inventory level, T?
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Related Book For
Supply Chain Focused Manufacturing Planning and Control
ISBN: 978-1133586715
1st edition
Authors: W. C. Benton
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