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Question
Given the following information to perform an Economic Order Quantity Analysis: Cost of gloves: $4.00 per box; Carrying Costs: 33% of cost per box; Cost of ordering: $150 per order; Lead time: 10 days; Annual demand: 10,000 boxes per year. What is the EOQ? What level is the reorder points? How many times per year should gloves be ordered? If the cost of ordering increased, should gloves be ordered more or less frequently? Where do you judge the greatest potential variability exists in medical glove ordering data?
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