Heather, manager of a large medical supply house that operates 45 weeks per year and 5 days per week, has decided to implement a fixed-period inventory system for all class A items. One such item has the following characteristics:
Demand = 8,000 units/year
Order cost = $40/order
Holding cost = $4/unit/year
If Heather wishes to minimize total cost (thereby approximating the economic order quantity (EOQ)), what should be T, the number of workdays between orders (i.e., review period)?

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The Answer of Heather, manager of a large medical supply house that operates 45 weeks per year and 5 days per week, has decided to implement a fixed-period inventory system for all class A items. One such item has the following characteristics:
Demand = 8,000 units/year
Order cost = $40/order
Holding cost = $4/unit/year
If Heather wishes to minimize total cost (thereby approximating the economic order quantity (EOQ)), what should be T, the number of workdays between orders (i.e., review period)?

Heather, Manager of a Large Medical Supply House That Operates