A community hospital in Southeast Ohio consumes 1,000 boxes ofbandages per week. The price...

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Accounting

A community hospital in Southeast Ohio consumes 1,000 boxes ofbandages per week. The price of bandages is $35 per box, and thehospital operates 52 weeks per year. The ordering cost is $15, andthe cost of holding one box is 15% of the price of the material.The lead time to receive materials is 2 weeks.
f) If the hospital uses a periodic review system, with thereview period (P) equal to 2 weeks and cycle-service level of97%:
i. What would be the target inventory level, T? (Use theoriginal information from part e)
ii. What is the cost of using the periodic review system? iii.Compare/Contrast the continuous review system and periodic reviewsystem in terms of safety stock and costs. What are the managerialimplications of each?

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I have taken the screen shot to attach since thefunctions are not getting copied from exceliiiThe continuous review system requires knowing physicalinventory all the times like using a barcode scanner every timecashier scans product purchased by the customer to updateinventory This method is more expensive to See Answer

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In: AccountingA community hospital in Southeast Ohio consumes 1,000 boxes ofbandages per week. The price of...A community hospital in Southeast Ohio consumes 1,000 boxes ofbandages per week. The price of bandages is $35 per box, and thehospital operates 52 weeks per year. The ordering cost is $15, andthe cost of holding one box is 15% of the price of the material.The lead time to receive materials is 2 weeks.f) If the hospital uses a periodic review system, with thereview period (P) equal to 2 weeks and cycle-service level of97%:i. What would be the target inventory level, T? (Use theoriginal information from part e)ii. What is the cost of using the periodic review system? iii.Compare/Contrast the continuous review system and periodic reviewsystem in terms of safety stock and costs. What are the managerialimplications of each?