6.PetSmart operates 48 weeks per year and uses a continuous review inventory system. It purchases dry dog food for $16 per bag. The following information is available about these bags. Refer to the standard normal table at bottom of this page.

Average demand = 94 bags/week

Order cost = $40/order

Annual holding cost = 25 percent of the unit cost

Desired cycle-service level=90 percent

Lead time = 1 week constant

Standard deviation of weekly demand = 16 bags

Current on-hand inventory is 300 bags, with no open orders or backorders.

a. What is the amount of safety stock required to meet the desired service level? ____ bags (Enter your response rounded to the nearest whole number.)

b. What should be the reorder point (ROP)? ____ bags (Enter your response rounded to the nearest whole number.)

c. What is the EOQ? (Enter your response rounded to the nearest whole number.)

d. What is the total annual cycle inventory cost when the EOQ is used? _____ dollars (Enter your response rounded to two decimal places.)