Inventory Mangement:
A hospital reports that it has 10 days of supply of blood. What are its annual turns?
Expert Answer
Consider the following notation:
Convert the 10 days of supply to years of supply as shown below:
Flow time, T = 10 days = 10/365 days per year = 0.0274 year.
Turns = 1/T = 1/0.0274 year = 36.5 per year
Therefore, Annual turns for the hospital is found to be 36.5 per year.