$1.(1$ Point$)$ An entity that negotiates contracts with manufacturers or distributors for

multiple healthcare providers is

A$.$ a supply chain

B$.$ a group purchasing organization

C$.$ a group of providers

D$.$ a state agency

$2.(1$ Point$)$ Which of the following are not activities of supply chain management?

A$.$ Creating an IT infrastructure that supports supply chain operations

B$.$ Developing strategic partnerships with suppliers and distributors

C$.$ Developing schedules for healthcare operations

D$.$ Managing procurement

$3.(1$ Point$)$ Replacement knee joints, replacement shoulder components, or heart pumps

would likely be categorized in which group?

A$.$ Class A items

B$.$ Class B items

C$.$ Class C items

$4.(1$ Point$)$ If the demand for saline flushes is constant at $10$ per day and the lead time for

the pharmacy to replenish supply is exactly $2$ days, then the reorder point is

A$.10$ units

B$.5$ units

C$.20$ units

D$.30$ units

$5.(3$ Points$)$ The annual demand for silver dressings is $1,500$ boxes. The holding cost per

box per year is $$120,$ and the cost of placing an order is estimated at $$40.$ The purchase

price per box is $$450.$ Assume that demand is known and constant.

a$.(1$ Point$)$ Determine the optimal order quantity of silver dressings.

b$.(1$ Point$)$ Determine the total annual ordering and holding costs.

c$.(1$ Points$)$ Management would prefer to set the holding cost as a percentage of

purchase price. Thirty percent of the item$$s price seems appropriate. Determine

the new optimal order quantity and total costs.

$6.(3$ Points$)$ St$.$ Mary$$s Hospital purchases admission kits for patients with infectious

conditions such as methicillin$-$resistant staphylococcus aureus $($MRSA$)$ from Johnson &

Johnson $($J&J$).$ J&J is now offering a $6\%$ discount if St$.$ Mary$$s orders an integer number

of batches. Each batch consists of $1000$ kits $($that is to say, if St$.$ Mary$$s orders below $1000$

bikes, it gets no quantity discount. If it orders at least one batch, it will get $6\%$ off per

kit$).$ What is the optimal order quantity for St$.$ Mary$$s when quantity discount is offered?

The following information is relevant to forming the decision:

$$ Annual demand is $5000$ units.

$$ Ordering cost is $$100$ per order.

$$ Annual holding cost is comprised of a $5\%$ insurance premium for the average

inventory held during the year calculated using the net purchase price plus a

warehousing cost of $$6$ per unit.

$$ Purchase price is $$200$ per unit before discount.