Week 3 Individual
John Clark
OPS/TM571
March 26, 2012
Robert Wolf

The simulation is broken down into a series of situations and provides suggestions throughout the inventory management system within the Elms Valley SurgiCare Center (EVSC). The simulation helps to demonstrate how cycle service level, lot sizes and safety stock have the influence to impact inventory cost.
The data presented was used to calculate inventory levels as followed: I under-estimated the stock on hand quantities, over-estimated the demand for the gloves and also over-estimated the quantities ordered for the surgical gloves. Both EOQ’s were shown to be less than optimum per the simulations standards, but the decisions that I made were shown to be the best alternatives. The average price computed out to $0.27 each for surgical gloves, with what was considered to be an optimum cost of $.025 each, and $0.29 for exam gloves and an optimum cost of $0.24 each. The simulation also explored a “Quantity Discount Schedule” and the quantities required to experience price breaks. The introduction of new data was used to calculate the EOQ lot sizes and increase them to 4000 for both gloves followed by the order quantities decreased because of the excess supply. Both safety stocks and order quantities were within 100 of the optimum value. What was computed was the average cost per unit for surgical gloves at $.01 less than the optimum value, but exam gloves stayed the same, at $.01 more than the optimum value The next section of the simulation brought about new calculations that were run to optimize the data requirements of the simulation. In this section of the simulation safety stocks were lower than optimum, but within 100 units. Order quantities were within 1000 for each glove, and the lot sizes were the optimum choices for the data given. The results of these changes to the