Homework due 041211

Homework due 041211 - $20. The Hospital has a targeted...

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Homework Learn how to work these homework problems before Tuesday, April 12. You won’t need to turn anything in. I’ll ask you to work out one of them for a quiz grade on Tuesday. The answers are in red. 2. Carol Philips is in charge of pharmaceutical suppliers at City General Hospital (CGH). During the past year, average forecasted daily demand for JY-25 bandages has been 20 cases. The forecast error standard deviation is 7.4 cases per day. The average lead time for this item is 10 days with a standard deviation of lead time of 1.8 days. The item cost is $140 per case, associated annual inventory carrying cost is 27% of the item cost, and ordering cost is
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Unformatted text preview: $20. The Hospital has a targeted service level of 90% for these bandages. CGH is open 365 days per year. (a) What is the reorder point for the JY-25 bandages? 255 cases (b) What is the total annual cost associated with Ms. Philip’s current policy of ordering 200 cases? $6,589 / year (c) How much could be saved by ordering the EOQ amount? $1,187.71 / year 3. Demand during a product’s lead time is 218 units with a standard deviation of 40 units. If the reorder point is 300 units, what is the service level? 97.98%...
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This note was uploaded on 04/11/2011 for the course WCOB 2023 taught by Professor Billthompson during the Spring '07 term at Arkansas.

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