Prepare a memo to the finance managers of the Healthcare Organization (HCO) in which you explain industry best practices regarding aspects of strategic planning. Include an explanation of the relationship between economic ordering quantity(EOQ), stock out, and risk.
What possible risk(s) might the HCO face if it has a materials management policy that seeks to reduce inventory carrying costs and therefore has an EOQ on critical items that reflects that policy.
Questions to Address in your Submission:
Describe the process to finance managers to determine the correct quantity that will both avoid a shortage or reduce the cost carrying extra inventory.
What are other considerations (i.e., product shortages, lead times for delivery, or price increase)?
Length: 1-2 pages, not including the reference page
References: Include a minimum of 3 scholarly resources.
Prepare a memo to the finance managers of the Healthcare Organization (HCO) in which you explain industry best practices regarding aspects of strategic planning. Include an explanation of the relationship between economic ordering quantity(EOQ), stock out, and risk.
What possible risk(s) might the HCO face if it has a materials management policy that seeks to reduce inventory carrying costs and therefore has an EOQ on critical items that reflects that policy.
Questions to Address in your Submission:
Describe the process to finance managers to determine the correct quantity that will both avoid a shortage or reduce the cost carrying extra inventory.
What are other considerations (i.e., product shortages, lead times for delivery, or price increase)?
Length: 1-2 pages, not including the reference page
References: Include a minimum of 3 scholarly resources.
Prepare a memo to the finance managers of the Healthcare Organization (HCO) in which you explain industry best practices regarding aspects of strategic planning. Include an explanation of the relationship between economic ordering quantity(EOQ), stock out, and risk.
What possible risk(s) might the HCO face if it has a materials management policy that seeks to reduce inventory carrying costs and therefore has an EOQ on critical items that reflects that policy.
Questions to Address in your Submission:
Describe the process to finance managers to determine the correct quantity that will both avoid a shortage or reduce the cost carrying extra inventory.
What are other considerations (i.e., product shortages, lead times for delivery, or price increase)?
Length: 1-2 pages, not including the reference page
References: Include a minimum of 3 scholarly resources.