Question

1.

EOQ works well when demand is stable. Describe how the EOQ formula can be used with variable demand.

2.Describe the state of technology use in hospital supply chain.

Answer 1

Basic assumptions with EOQ:

1. Demand is known, constant and independent.

2. Lead time is known and constant

3. Receipt if inventory is instaneous and complete.

4. Quantity discounts are not possible

EOQ formula with variable demand:

1. EOQ is a ideal order quantity a company should purchase for it inventory in given cost of production, demand rate and variable.

2. It is hell to maintain inventory cost at low level.

3. EOQ take into account storage, ordering cost and shortage cost.

Formula:

Multiply total order by fixed unit cos(t 3500A- $15) and get 52500 and multiply that into 2 and get 10500 divide number by holding cost and get 35000, take square root that get 187. That number is then Q.

Health technology:

1. Health technology organize and skills of using mechines.

2. Used in the form of medicine, vaccine, procedure in health care.

3. It improved quality health care.

4. Used in early diagnosis and treatment.

5. Highly useful in preventive care aspects.