20 Oct 2020
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 ears of usage. Other relevant information from the practices inventory records depicted in table Ex 11.6 attached, The practice is functional for fifty two weeks a year.
a. perform basic EOQ (Economic Order Quantity) 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.