Question: Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A

Oakwood Hospital is considering using ABC
Oakwood Hospital is considering using ABC
Oakwood Hospital is considering using ABC
Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system ( B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) Babble, Inc., buys 375 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is $11.75. Holding cost is $0.25 per cassette per year. a. How many tapes should Babble order at a time? Babble should order tapes at a time. (Enter your response rounded to the nearest whole number.) At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost of placing an order to replenish stock is $35, and the annual cost of holding is $6.00 per book. Stock is received 15 working days after an order has been placed. No backordering is allowed. Assume 350 working days a year. a. Dot Com's optimal order quantity is books. (Enter your response rounded to the nearest whole number.)

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!