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Brooke Army Medical Center dispenses 250,000 bottles of brand name pharmaceutical annually. The optimal safety stock...

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Finance

Brooke Army Medical Center dispenses 250,000 bottles of brandname pharmaceutical annually. The optimal safety stock (which is onhand initially) is 1,000 bottles. Each bottle costs the center $10,inventory carrying costs are 30 percent, and the cost of placing anorder with its supplier is $175. Orders can be placed only inmultiples of 100 units.

a. What is the economic order quantity?

b. How many orders will be placed annually?

Please show work in Excel!

Answer & Explanation Solved by verified expert
4.3 Ratings (746 Votes)
Annual demand A 250000 unitsBottle cost 10Annual holding cost C 3010 3 perunitOrdering cost o 175Economic    See Answer
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