What extra cost does the hospital incur-cycle-service level

Assignment Help Operation Management
Reference no: EM13994067

Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $15 and the cost of holding one box for a year is 15 percent of the value of the material.

a. The hospital orders bandages in lot sizes of 900 boxes. What extra cost does the hospital incur, which it could save by using the EOQ method?

b. Demand is normally distributed, with a standard deviation of weekly demand of 100 boxes. The lead time is 2 weeks. What safety stock is necessary if the hospital uses a continuous review system and a 97 percent cycle-service level is desired? What should be the reorder point?

c. If the hospital uses a periodic review system, with P = 2 weeks, what should be the target inventory level, T?

Reference no: EM13994067

Uses a continuous review inventory control system

Petromax Enterprises uses a continuous review inventory control system for one of Its SKUs. The following information is available on the item. The firm operates 50 weeks in a

Specify independent and potentially confounding variables

For each item below, specify the independent, dependent, and potentially confounding variables. Eighty rats were weighed and then randomly assigned into four groups. Each grou

How would organizational and is strategy need to change

Consider a traditional manufacturing company that wanted to build a social business strategy. What might be a reasonable business strategy, and how would organizational and IS

Manufacturing facilities and development laboratories

When a company has manufacturing facilities in Malaysia, research and development laboratories in Germany, and sales offices in the united states, it is high on what factor?

Best leverage the tacit knowledge inherent

Echoing principles of the human relations movement, Dalkir claims that much of the organization's valuable knowledge walks out the door at the end of the day. How can organiza

Sales commitment can be represented as constraints

If the profit for product 1 is $10 per unit with probability 90%, you can model this problem as LP problem. In LP problems, you can restrict the decision variables to whole nu

Nebula produced under research and development contract

Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in bidding on a follow-up government contract. In gathering cost data from the first three

Justify the recommendation on employee burnout

The vice-president of administration at your company wonders whether employees are taking adequate amounts of vacation time. Employee burnout is a concern. What factors should


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd