Find the $Q_e$ and $TC,$ assuming the following:Find the low$-$cost reorder point under conditions of uncertainty given the following

information:

Stock$-$out cost $=$$$6\mathrm{.}00$ per item

Overstock cost $=$$$1\mathrm{.}00$ per item

Probability of

meeting demand

$P=$$$5$

$D=20,000$

$O=$$$10$

$I=10\%$

$H=$$$\mathrm{.}75$

$Q_e=\sqrt[\phantom{2}]{\frac{2DO}{IP+2H}}$

$TC=PD+\frac{D}{Q_e}O+(H{Q}_e+IP\frac{Q_e}{2})$

Given a constant demand for the product, how many orders will be made in one year?

Given a constant demand and a lag time of five days between order and receipt, how

many units will be in stock when you place an order?

Given a constant demand, how many days will elapse between orders?

What is the carrying cost?

What is the opportunity cost?

What is the cost of the average inventory?

What is the volume of the average inventory?

The hospital has only $$90,000$ budgeted for the product. What is the new price

the hospital must negotiate with the vendor to make budget?