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What is the economic order quantity

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Reference no: EM133205743

Problem:

Resolute Health dispenses 350,000 bottles of brand name pharmaceutical annually. The optimal safety stock (which is on hand initially) is 500 bottles. Each bottle costs the center $5, inventory carrying costs are 10%, and the cost of placing an order with its supplier is $50.

Required:

  1. What is the economic order quantity? Format is x,xxx (number only)
  2. What is the maximum inventory for this medication? Format is x,xxx
  3. How often must the center order (in days)? Format is xx days or x days
  4. How many orders of this pharmaceutical will need to be placed each year? Format is x or xx (number only)

Reference no: EM133205743

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