Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous...

  

  

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Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases Kitty Litter for $16.38 per bag. The following information is available about these bags: Demand Order Cost Annual Holding Cost Desired Cycle-Service Level Lead Time Standard Deviation of weekly demand Current on Hand Inventory Open Orders or Backorders SHOW YOUR CALCULATIONS 125 bags/week $75.00 per order 27% of cost 80% 3 weeks (21 working days) 21 bags 450 bags 0 A. What is the Economic Order Quantity (EOQ) for Kitty Litter? B. What would be the average time between orders (in weeks)? C. What would the Re-order Point (R)) be? D. An inventory withdrawal of 50 bags was just made... Is it time to re-order? E. The store currently uses a lot size of 700 bags (Q= 700). What would be the annual cost saved by shifting from the 700 bag lot size to the EOQ? Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases Kitty Litter for $16.38 per bag. The following information is available about these bags: Demand Order Cost Annual Holding Cost Desired Cycle-Service Level Lead Time Standard Deviation of weekly demand Current on Hand Inventory Open Orders or Backorders SHOW YOUR CALCULATIONS 125 bags/week $75.00 per order 27% of cost 80% 3 weeks (21 working days) 21 bags 450 bags 0 A. What is the Economic Order Quantity (EOQ) for Kitty Litter? B. What would be the average time between orders (in weeks)? C. What would the Re-order Point (R)) be? D. An inventory withdrawal of 50 bags was just made... Is it time to re-order? E. The store currently uses a lot size of 700 bags (Q= 700). What would be the annual cost saved by shifting from the 700 bag lot size to the EOQ?