Cynthia Baker, Manager of a Large Medical Supply House That

question 26

Essay

Cynthia Baker, manager of a large medical supply house that operates 50 weeks per year and 5 days per week, has decided to implement a fixed period inventory system for all class A items.One such item has the following characteristics:
Demand = 10,000 units/year
Order cost = $50/order
Holding cost = $5/unit/year
If Baker wishes to minimize total cost (thereby approximating the EOQ), what should be T, the number of workdays between orders (i.e., review period)?

---

Definitions:

Coracobrachialis

A muscle in the shoulder that assists in flexing and adducting the arm at the shoulder joint.

Pectoralis Major

A significant muscle located in the upper part of the chest that helps with shoulder and arm movements.

Deltoid

A sizable, three-sided muscle enveloping the shoulder joint tasked with raising the arm and providing the shoulder with its mobility.

Biceps Brachii

A large muscle of the upper arm responsible for flexing the elbow and rotating the forearm, well known for its two heads or points of origin.