Jones Surgicenter uses 90,000 bags of IV solution annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the center $1.50, inventory carrying costs are 20 percent, and the cost of placing an order with its supplier is $15. Assume 365 operational days per year.
a. What is the economic order quantity? Note: Format is x,xxx
b. What is the maximum inventory of IV solution bags? Note: Format is x,xxx
c. What is the center's average inventory of IV solution bags? Note: Format is x,xxx
d. How often must the center order (in days)? Note: Round DOWN to the nearest day for this problem. Format is: xx days