What quantity should Abby be ordering? Prove that your order
quantity is “better” than Abby’s by graphing ordering costs, holding
costs, and total costs for 1,000, 1,500, and 2,000 boxes.
b. How often will Abby need to order? About how many days will
there be between orders?
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Applications to Contemporary Healthcare Operations Issues
c. Assuming that Abby is not worried about SS, when should she place
her order? Draw another graph to illustrate why she needs to place
her order at that particular point.
d. Abby is concerned that the reorder point she determined is wrong
because demand for gloves varies. She gathers the following usage
information:
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