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Question - Brooke Army Medical Center dispenses 250,000 bottles of brand name pharmaceutical annually. The optimal safety stock (which is on hand initially) is 1,000 bottles. Each bottle costs the center $10, inventory carrying costs are 30 percent, and the cost of placing an order with its supplier is $175. Orders can be placed only in multiples of 100 units.
Required -
a. What is the economic order quantity?
b. How many orders will be placed annually?
q1. which of the following is not a relevant value in this problem?a10 cost to complete unitsb 265 former pricec 125
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