Essay About Good Estimates Of Order Cost And Storage Space

Hardly Hospital
Hardy Hospital CaseWhat are good estimates of order cost and inventory-holding cost? (State all assumptions and show all computations.)Order Cost: Single purchase order spent                    3         hoursSingle purchase order has                     4         SKUsSingle SKU spent (3/4)                0.75         hoursWorker-hour cost                        20        $/hourOrder cost (20 x 0.75)           _        15        $/SKUInventory-holding cost:Warehouse and hospital storeroom                                36,750                sq.ftVariable and semivariable cost for storage space                4.60                $/sq.ftTotal Variable & Semivariable costs                                169,050        $/yearNumber of warehouse workers                                5                workersCost per Worker                                                32,000                $/yearWorkers costs                                                        160,000        $/yearBenefits and overhead rate                                        20%                Workers costsBenefits and overhead costs                                        32,000                $/yearAverage hospital supplies in storage                                4,150,000        $Bond issue rate                                                8.9                %/yearFinance supplies in storage                                        369,350        $/yearTotal Variable & Semivariable costs                                169,050        $/yearWorkers costs                                                        160,000        $/yearBenefits and overhead         costs                                        32,000                $/year