You are the purchasing manager of a hospital the hospital


You are the purchasing manager of a hospital. The hospital uses a particular medical product more or less constant at 7871 units per year. You purchase the product from a supplier for $80.97 per unit. It costs about $11.4 per unit to store the product in the hospital inventory. The hospital accountant estimates that the cost of placing an order and processing a shipment from the supplier is about $41. The hospital operates 365 days a year. Assuming EOQ model is appropriate for this problem, the total annual inventory and purchasing cost is __________ dollars if you use the optimal order quantity.

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: You are the purchasing manager of a hospital the hospital
Reference No:- TGS01005260

Expected delivery within 24 Hours