The CHEMSA chemical supply center provides popular sterilization materials for hospitals. The weekly demand for sterilization materials is two hundred packages. This center is functional for fifty - two weeks a year. The unit purchase cost of the sterilization materials is $ 15 per package. There are no discounts available for ordering large quantities. A cost study finds that the average cost of placing an order is $ 50 per order, and the weekly carrying cost is $ 0.60 per package.
a. Determine the economic order quantity.
b. Determine the average number of packages on hand.
c. Determine the number of orders per year.
d. Calculate the total cost of ordering and carrying for sterilization packages.