Question: 4. ABC Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases cleaning supplies for $11.70

4. ABC Hotel operates 52 weeks per year, 6 days

4. ABC Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases cleaning supplies for $11.70 per unit. The following information is available about this product: Demand = 90 units/week (normally distributed) Standard deviation of weekly demand = 15 units Ordering cost = $54/order Annual holding cost = 27 percent of cost Desired service level = 80 percent Lead time = 3 weeks Current on-hand inventory is 320 units, with no open orders or backorders. a. Calculate the EOQ and the average time between orders (in weeks). b. Calculate the reorder point. c. An inventory withdrawal of 10 units was just made. Is it time to reorder? Why? d. The hotel currently uses a lot size of 500 units. What would be the annual cost saved by shifting from the 500-units lot size to the EO

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