Continuing Case Study

This week, please read the continuing case at the end of Chapters 18 and 19 in your textbook.

After studying the Chapter 18 case, respond to the following:

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  1. Assuming that the safety stock of NPH insulin must be three vials, what is the optimal order quantity? What is the optimal number of orders per year?

After studying the Chapter 19 case, respond to the following:

  1. Why does Dr. Jackson prefer the line of credit to a bank note?
  2. Why does the bank prefer to extend credit in the form of a note rather than as a line of credit?

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