What is the annual physical cost of holding

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Reference no: EM132300711

Centura Health has demand for 1000 IV starter kits a week. It orders enough for five weeks at a time. The fixed cost to place an order is $100. The physical cost of holding an item in inventory is 10%. The cost of money for Centura is 5%. The cost to purchase each IV starter kit is $10. The lead time for delivery to Centura is 2 weeks.

What is the economic order quantity (Q*) to order an IV?

What is the annual physical cost of holding one IV in stock at Centura for a year?

What is the annual cost of ordering IVs at Centura?

What is the cycle inventory for IVs at Centura?

Reference no: EM132300711

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