operations managnment

1. The maintenance department of a large hospital uses about 120 cases of liquid cleaner every month. The annual carrying cost for each case of liquid cleaner is estimated to be $6. In addition, the cost for the department to process each order is estimated to be $18. The lead time for delivery is 3 days. The staff in this department working 365 days in the year. Based on the details that presented in this case, you need to calculate the following:

a. In what quantities should the department order? (10 Points)

b. How many times should the department order in a year based on EOQ? (5 Points)

c. What is the length of the order cycle? (10 Points)

d. What is the Re-Order Point (ROP)? (10 Points)

e. What will be the total inventory cost if the cases of liquid cleaner are ordered based on EOQ? (15 Points)

2. Identify and describe in detail the main requirements for effective inventory management? (25 Points)

3. What are the main approaches that used by organizations to keep track of inventory? Clearly explain in detail each of these approaches. Support you answer by identifying some of the technologies that may be used for each approach (20 + 5 Points)

The End

5	Final Assessment (20%) Spring 2020 – Online 2