Question: Part B. Hospital B has had a consistent constant demand of 3120 items/year for one of their popular inventory items. Changes to their inventory policy

Part B. Hospital "B" has had a consistent

Part B. Hospital "B" has had a consistent constant demand of 3120 items/year for one of their popular inventory items. Changes to their inventory policy are being considered due to a change in the lead time of their supplier to 1.3 weeks and an increase of their safety stock to 18. Actions were also taken to incorporate a lot size in their inventory policy that would minimize the cost of ordering and carrying inventory. The information in their latest quarterly report was collected and reported below. This information is to be used in planning future inventory policies. Report on the requested item with a cost of $100 Quarterly report on warehouse operations Average Inventory $42000 Total inventory carrying cost $7560 Quarterly report on purchasing department operations Total order frequency 80 Total ordering cost $76560 Question 3a. Which inventory policy satisfies their requirements? A. (78.576) B.(96,576) C. (78, 288) D. (96.288) E. none of the above Question 3b! What would be the total annual inventory cost for the inventory policy that satisfies their requirements where the total annual inventory cost is the total annual carrying cost plus the total annual ordering cost? A. $22031.50 B. $20735.50 C. $11015.75 D. $10367.75 E. none of the above

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