Vilas County Hospital consumed 400 boxes of bandages per week last year. The price of bandages was $80 per box, and the hospital operates 52 weeks per year. The cost of processing an order was $64, and the cost of holding one box throughout a full year was 20% of the value of the material. Last year the hospital ordered bandages, on average, once every two weeks, each time ordering 800 boxes. What extra cost did the hospital incur that could have been avoided if the EOQ concept had been applied?

Question

06-05-2022
Business

Answered

At Westonci.ca, we connect you with experts who provide detailed answers to your most pressing questions. Start exploring now! Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Vilas County Hospital consumed 400 boxes of bandages per week last year. The price of bandages was $80 per box, and the hospital operates 52 weeks per year. The cost of processing an order was $64, and the cost of holding one box throughout a full year was 20% of the value of the material. Last year the hospital ordered bandages, on average, once every two weeks, each time ordering 800 boxes. What extra cost did the hospital incur that could have been avoided if the EOQ concept had been applied?

Sagot :

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.

A sample of gold weighing 38.6 g was added to a graduated cylinder containing 23.00 mL of water. The volume of the water plus the gold was 25.00 mL. What is the

An elevator has 4 passengers and 8 floors. Find the probability that no 2 passengers get off on the same floor considering that it is equally likely that a pers

Which of the following individuals has enrolled in a plan based on a fixed enrollment period? a. Josephine, who enrolls in Original Medicare when she first beco

Match the type of insurance to the coverage it provides. 1. Insurance that covers the insured only for a specific, stated term, such as ten years endowment 2.

Somebody please assist me solve (2) The number of incoming calls reaching the switchboard of a computer per minute is thought to be a Poisson random variable wi

g When choosing a forecasting technique, a critical trade-off that must be considered is that between: time series and associative. seasonality and cyclicality.

The Pendleton Civil Service Reform Act of 1883 attempted to pattern government hiring after practices found in

Explain the mechanics of breathing. Include the role of intercostal muscles, diaphragm, and air pressure.

Read the scenarios below. For each of the scenarios, identify the following (you should identify the 3 for EACH of the scenarios): Control Group Independent Var

Every row and every column of this 3 x 3 square must contain each of the numbers 1, 2 and 3. What is the value of N + M? (A) 2 (B) 3 (C) 4 (D) 5 (E) 6

Tundexi Tundexi · Answer 1 · 2022-05-10T06:46:21-04:00

More than $1,450 is the extra cost incured which would have been avoided if the EOQ concept had been applied.

What is an Economic order quantity?

This is a technique in inventory management that helps to make an efficient management decision

The formula for EOQ is (2AO / H)^(1/2) where A (400 x 52) = 20,800, O = $64 and H (80 x 20%) = 16

EOQ = (2*20800*64)^(1/2)

EOQ = 1631.68624435

EOQ = $1631.67

Therefore, the Option D is correct.

Missing options "A) less than or equal to $650 B) more than $650 and less than $1,050 C) more than $1,050 and less than $1,450 D) more than $1,450"

Sagot :

What is an Economic order quantity?

Other Questions