Health Care Operations Management

Health Care Operations Management (James R. Langabeer II). Chapter 12

In MS Excel 1-6

1. A community hospital in Pennsylvania has a 15% supply expense ratio. If total operating expenses are $1,000,000 this month, what is the total annual cost of supplies?
2. A hospital buys certain supplies for %50 each. The average markup is 0. Additional selling costs are %25 of the total cost. What is the net realizable value?
3. Assume this same product has a current replacement cost is $40. What is the lower of cost of market>
4. An organization discovers in a physical inventory count that the actual inventory on hand is %50,000 less than the value on the books. Write the accounting entry to record this shrinkage transaction.
5. Miami Trinity Healthcare has an average inventory balance of $2 million. The total annual supply expense is $10 million. Using a 360-day year, calculate the DIO.
6. A product has total usage of 1,000 over the course of the year. Each item costs $20. The transactional order cost from procurement is %50 each transaction, and the annual carrying cost is 10% of the total annual cost. Calculate the EOQ.