Question: begin{tabular}{cc} hline z value & Associated service level hline 1.28 & 90% 1.65 & 95% 2.05 & 98% 2.33 & 99%

\begin{tabular}{cc} \hline z value & Associated\begin{tabular}{cc} \hline z value & Associated\begin{tabular}{cc} \hline z value & Associated

\begin{tabular}{cc} \hline z value & Associated service level \\ \hline 1.28 & 90% \\ 1.65 & 95% \\ 2.05 & 98% \\ 2.33 & 99% \\ 3.08 & 99.9% \\ \hline \end{tabular} Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyer's choice). The supplier has offered Ollah the following terms: Order 1190 bags, and the price is $7.25 a bag. Order 191 or more bags, and the price is $5.25 a bag. Annual demand is 580 , fixed ordering costs are $14 per order, and the per-bag holding cost is estimated to be around $4 per year. Click the icon to view the table of z values. a. The economic order quantity for the bags is (Enter your response rounded to the nearest whole number.) b. Ollah should order bags at a time to take advantage of the lower cost per unit. (Enter your response rounded to the nearest whole a. The economic order quantity for the bags is (Enter your response rounded to the nearest whole number.) b. Ollah should order bags at a time to take advantage of the lower cost per unit. (Enter your response rounded to the nearest whole number.) c. Suppose the lead time for bags is a constant 1.7 weeks, and average weekly demand is 13.8 bags, with a standard deviation of 2.1 bags. If Ollah wants to maintain a 99% service level, what should her reorder point be? The reorder point is bags. (Enter your response rounded up to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!