SURGERY ASSOCIATES, a local surgery practice group, orders implants from device manufacturers. Order quantities for ten items have been determined based on the past two years of usage. Other relevant information from the practice's inventory records is depicted in Table EX 11.6. The practice is functional for fifty - two weeks a year.
a. Perform basic EOQ analysis for each item.
b. Classify the implant inventory items according to the ABC analysis.
c. Calculate the yearly inventory management cost.
d. Determine the investment cost (per cycle) for each item.
