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Island Hospital, Penang uses 3,000 boxes of needles quarterly. The hospital spend RM80 in ordering cost and the cost of holding one box of needle per year is RM5. Supplier lead time is 3 days and the hospital operates 340 days a year.
Based on the scenario given above, calculate the following:
a. The Economic Order Quantity
b. The number of orders made in a year and time between orders
c. The annual holding cost.
d. The annual ordering cost.
e. The total annual inventory cost.
f. The reorder point.
g. In a statement, state the hospital inventory management policy for this item.
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