Develop eoq model and explain results

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Reference no: EM132239396

Explain why an accurate patient registration is critical to an organization.

Annual Demand = 72,780 cards a year

Carrying Cost = .10 per card per year

Setup Cost = $100 per order

Business operates 350 days of the year

1a. Develop an EOQ model and explain results: How much to order, how many times a year, cycle time between orders, and total cost of the EOQ model

1b. It would be nice to have just enough cards on hand for one day of business because it would free up retail space. After a little math, (72,780/350) an optimal daily card number was about 208. What set-up cost must be negotiated to have an EOQ of 208? What would be the total cost of this ordering policy?

Reference no: EM132239396

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