Problem:
Jones surgicenter uses 90,000 bags of IV solution annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bags costs the center $1.50, inventory carrying costs are 20 percent, and the cost of placing an order with it supplier is $15.
Required:
Question 1: What is the economic order quantity?
Question 2: What is the maximum inventory of IV solution bags?
Question 3: What is the center's average inventory of IV solution bags?
Question 4: How often must the center order (in days?)
Note: Please show guided help with steps and answer.