Al Mana Memorial Hospital uses 100 syringes of a particular style each day, 365 days per...
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Al Mana Memorial Hospital uses 100 syringes of a particular style each day, 365 days per year. The distributor of this product offers the following price schedule Quantity Range Price per Copy 1-999 1.00 1000-2999 0.8 2500 and more 0.7 The cost to hold an item in inventory for a year is estimated to be 30 percent of its cost and the order cost for this item is estimated to be Sr. 15 per order. Determine the most economical quantity to buy each time this syringe is purchased. Assume the minimum inventory is zero. Answer: Al Mana Memorial Hospital uses 100 syringes of a particular style each day, 365 days per year. The distributor of this product offers the following price schedule Quantity Range Price per Copy 1-999 1.00 1000-2999 0.8 2500 and more 0.7 The cost to hold an item in inventory for a year is estimated to be 30 percent of its cost and the order cost for this item is estimated to be Sr. 15 per order. Determine the most economical quantity to buy each time this syringe is purchased. Assume the minimum inventory is zero. Answer:
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Solution EOQ with Unit price 1 The annual Demand D of item 100 syringes per day x 365 days per year 36500 syringes per year The ordering cost O of item 15 per order Holding cost C of item 30 of unit p... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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