The Excel inventory template found on the companion web site may
be helpful for this problem. An Excel spreadsheet with data for
the problem can also be downloaded from ache.org/books/
OpsManagement.
Hospital purchasing agent Abby Smith needs to order examination
gloves. Currently, she orders 1,000 boxes of gloves whenever she thinks
there is a need. Abby has heard that there is a better way to do this and
wants to use EOQ to determine how much to order and when. She col-
lects the following information.
Cost of gloves:
Carrying costs:
Cost of ordering:
Lead time:
Annual demand:
$4.00/box
33%, or $__________/box
$150/order
10 days
10,000 boxes/year
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