Question
A large hospital has an annual demand for 70,000 booklets on healthy eating. It cost
a year, and it costs
The optimum number of copies per order is
(Round to the nearest integer as needed.)
a year, and it costs
The optimum number of copies per order is
(Round to the nearest integer as needed.)
Ask by Bob Peterson. in the United States
Mar 07,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The optimum number of copies per order is 3883.
Solution
Sign in to Unlock Answers for Free!
A Learning Platform Trusted by Millions of Real Students and Teachers.
Unlock Answered by UpStudy AI and reviewed by a Professional Tutor
Like
The Deep Dive
To find the optimum number of copies per order, we can use the Economic Order Quantity (EOQ) formula:
Where:
-
= annual demand (70,000 booklets) -
= ordering cost per order ($70) -
= holding cost per unit per year ($0.65)
Plugging in the numbers:
Rounding to the nearest integer, the optimum number of copies per order is 3877 booklets.
Looking to optimize operations in a busy hospital is crucial, not just for costs but also for ensuring patients receive the right information at the right time. The EOQ helps strike a balance between ordering costs and holding costs, ultimately leading to a more efficient supply chain.
In practice, hospitals can face challenges with inventory management due to fluctuating patient numbers or unexpected demand spikes. Keeping track of seasonal trends in patient inquiries can provide insight into revising your EOQ calculations and managing inventory effectively.
