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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?
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