Question: Enabled: Final Exam ( 4 5 points: 1 5 . Help Sove & Exit subm A hospital needs 2 , 9 0 0 units of

Enabled: Final Exam (45 points: 15.
Help
Sove & Exit
subm
A hospital needs 2,900 units of a medicine throughout the year. The purchasing cost varies with the size of the order. If the number of units of the medicine that the hospital orders is below 100, the supplier charges $30 per unit; if it is between 100 and 499, the price is $27 each; and if they order 500 units and above, it is $26 per unit. The holding cost per unit per year is $30, as the medicine must be kept in a special device to prevent spoilage. The ordering cost is $10.
a. How many units of the medicine can hospital order each time to minimize their total cost? (Round your answer to a whole number.)
The hospital has to order
unite
each time to minimizo their total annual inventory cost
b. What is the minimum annual total cost? (Round your answer to a whole number.)
The total cost is
Prev
15 of 15
Next

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!