Read Case 28 (pages 183-187) from Gapenski’s Cases in Healthcare Finance – “Clarinda Community Hospital.”

Prepare your response in memo format, suitable for presentation to a senior level executive. All Excel work should be imported into the memo in table format (in the body of the document) or enclosed as an Appendix within the same document.

  1. What is the economic ordering quantity for SKU Number 53104 if the forms are ordered from Supplier A? From Supplier B? Round your answers up to the next whole unit.
  2. How many orders should be placed each year if the hospital buys from Supplier A? If it buys from Supplier B?
  3. Calculate the total inventory cost (the cost of ordering plus the cost of carrying inventories) that the hospital would incur under each supplier. On the basis of the information developed, which supplier should the hospital use?

For some additional guidance on how to construct a professional memo, please see the link below.