Question: i need help solving ny homework Part I - Inventory Audit - EOQ Patriot Pharmacy is a pharmaceutical distributor in the Midwest that supplies nursing
i need help solving ny homework
Part I - Inventory Audit - EOQ Patriot Pharmacy is a pharmaceutical distributor in the Midwest that supplies nursing homes with thousands of pharmaceuticals. Nick Hall, an MBA student, did a project for an Operations / Supply Chain class that involved auditing a representative sample of their inventory. To start, he chose just one item, Plavix, gathered data on it, and compared their current policies and costs with his recommended one. He would verify the data, and then collect information on about 30 more items. After analyzing their spreadsheets and having long discussions about their costs, here is the data he collected for the first item. Plavix Demand = 1,964.5 units/week Cost per unit = $3.80 Cost of holding inventory = 20% annually Fixed ordering cost = $16 Current order size = 1,000 (e) What is the total relevant cost of inventory (annual fixed cost of ordering + annual holding cost) when using the EO

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