Solution Library

Calculation Of Economic Order Quantity


Wood County Hospital consumes 400 boxes of bandages per week. The price of bandages is $80 per box, and the hospital operates 52 weeks per year, 7 days a week.
The cost of processing an order is $64 and cost of capital is 20% (cost of carrying $1 worth of inventory for one year is $0.20).
a.   What is the Best Q (Economic Order Quantity, Order Size) and why?
b.   Average time a box of bandage is stored in the warehouse


The question belongs to Operations Management and it discusses about the best economic order quantity and the average time a box of bandage can be stored in a warehouse.

Total Word Count 240

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.