# Support EOQ: Hospital Glove Simulation (UOP)

Support EOQ: Hospital Glove Simulation

Write a paper of no more than 700 words in which you address the following: Summarize the simulation along with your results. Be sure to describe Hospital Glove's primary organizational objectives. How did your decisions affect the simulation outcome? Describe and evaluate the inventory model used in the simulation. Describe and analyze the scheduling and controlling techniques that apply to the simulation. What recommendations would you make regarding inventory models or scheduling and controlling techniques for this organization to meet its objectives? How would the use of technology affect the inventory models or scheduling and controlling techniques for this organization?

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#### Solution Preview

#316853...

Important Note: OTA's do not provide material that a student can simply print-off and submit as their own! The job of the OTA is NOT to write an essay for the student, but to provide ideas, definitions, research help, and instructions on how the student should approach the problem.

Thus, the following is a "start" ....it is the answer key to the Inventory Management simulation exercise used in MGT/554...... you should add your own additional words to customize the answers to your own individual style of writing (otherwise your teacher would notice that someone else other than you wrote the answers)......hope this helps you.

Basis for the case study

While an inventory manager needs to control thousands of products required in a hospital, for

the purpose of this simulation, we have considered just surgical and exam gloves. The objective here is not to minimize inventory or maximize service, but to have the right amount on hand to support the competitive priorities of the hospital.

Cycle 1 (Jul-Aug)

Rationale for the feedback

The learner's performance is assessed on the following aspects:

1. Forecasted demand and the quantity ordered vs. the actual usage

To make accurate forecasts, the learner has to observe demand trends in the historical

data and inventory records. The system checks the demand forecasted and the total

quantity ordered for two months with the actual usage, and feedback is provided for the

following conditions:

? If total quantity ordered < actual usage

? If total quantity ordered > actual usage

? If total quantity ordered = actual usage

In this case, the optimal solution is when the learner forecasts demand and orders a

quantity that is equal to the actual usage (+/- 10%) after taking into account the on-hand

inventory.

2. Lot size vs. the EOQ and the inventory costs

Economic order quantity is the lot size that minimizes total annual inventory holding and

ordering costs. However, in reality, it may not be possible to order a lot size that is exactly

equal to the EOQ. The learner has to refer to the EOQ values and consider the minimum

order quantity offered by the vendor to decide the lot size. The system checks the lot size

with the EOQ, and provides feedback on the following conditions:

? If lot size < EOQ

? If lot size > EOQ

? If lot size = EOQ

In this case, the optimal solution is when the learner decides on a lot size that is equal to

the EOQ (+/- 10%) after taking into account the inventory costs and the minimum order

quantity.

3. Safety stock maintained vs. the optimal value

To maintain a cycle service level of 99 percent, the learner has to keep a safety stock

level of zσL, where z is the number of standard deviations from the mean needed to

implement the cycle service level and σL is the standard deviation of demand during lead

time probability distribution. The system checks the safety stock levels decided with the

optimal safety stock ...

#### Solution Summary

The expert determines how did your decision affect the simulation outcomes. An evaluation for the inventory model used in the simulation is examined.