Hardly Hospital
Autor: Supakit Sangkatumvong • August 11, 2015 • Coursework • 1,834 Words (8 Pages) • 573 Views
Hardy Hospital Case
- What are good estimates of order cost and inventory-holding cost? (State all assumptions and show all computations.)
Order Cost:
Single purchase order spent 3 hours
Single purchase order has 4 SKUs
Single SKU spent (3/4) 0.75 hours
Worker-hour cost 20 $/hour
Order cost (20 x 0.75) _ 15 $/SKU
Inventory-holding cost:
Warehouse and hospital storeroom 36,750 sq.ft
Variable and semivariable cost for storage space 4.60 $/sq.ft
Total Variable & Semivariable costs 169,050 $/year
Number of warehouse workers 5 workers
Cost per Worker 32,000 $/year
Workers costs 160,000 $/year
Benefits and overhead rate 20% Workers costs
Benefits and overhead costs 32,000 $/year
Average hospital supplies in storage 4,150,000 $
Bond issue rate 8.9 %/year
Finance supplies in storage 369,350 $/year
Total Variable & Semivariable costs 169,050 $/year
Workers costs 160,000 $/year
Benefits and overhead costs 32,000 $/year
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