Economic Order Quantity (EOQ) is a method used to calculate the ideal quantity to order. The underlying concepts of EOQ is the balance between ordering cost and holding cost.
After watching the video and using the data points given below, perform two calculations:
A = annual demand = 20,000
Cp = Cost of an order which includes preparing and following up the order = $100.00
Ch = Unit inventory cost per year or item cost (P) $100 times annual carrying cost rate (r) (25%)
1. Use an excel file to calculate the EOQ order. To get full credit, make sure to use the formula bar to create the EQO formula. Follow the video provided
2. Now that you have calculated EOQ, you now know the ideal quantity to order. However, to mitigate against disruptions and shortages, procurement managers also order safety stock to cover demand while waiting for the replenishment orders to arrive. Watch the video below of the interview with a procurement manager at a local hospital and take a listen on how he dealt with the Covid 19 Pandemic. The pandemic created major disruptions in all supply chains. After watching the interview – do online research of the approach other companies took regarding safety stock. You may use the company you work for as an example.
PLACE THIS ORDER OR A SIMILAR ORDER WITH NURSING TERM PAPERS TODAY AND GET AN AMAZING DISCOUNT
