A regional hospital uses 48724 syringes per year If it costs

A regional hospital uses 48724 syringes per year. If it costs them $49 to place and order and the carrying cost per syringe is $3.00, how many syringes should be ordered in each order?

Your Answer:

Solution

Economic Order Quantity = SQRT(2 × Quantity × Cost Per Order / Carrying Cost Per Order)

= Square root of ( 2 x 48724 x $49 / $3 )

= 1,262 syringes per order.