Formula Flashcards
1
Q
Formula for
Inventory Reorder Point
A
Inventory reorder point=Avg daily Use X Lead Time
2
Q
Formula for
Reorder Quantity
A
Re-order Quantity=Avg Daily use X Turnover Goal (in days
Avg inventory on hand= (beginning Inventory $ + Ending Inventory $) / $2
3
Q
Formula for
Inventory Turnover Ratio
A
Inventory Turn Over Ratio=Total drug and medical supply purchase over specified time frame/ avg inventory on hand for that specified time frame
4
Q
Formula for
Average Shelf Life of inventory in days
A
Avg Inventory shelf life days= 365 / Inventory Turnover Ratio
5
Q
Formula for
Breakeven Point
A
Breakeven point=# of times service needs to occur to breakeven=(price of equipment including support and maintenance) / (client invoiced cost - cost to actually produce the service)
