Chapter 9: Sam's Cat Hotel operates 52 weeks per year and uses a continuous review inventory system. It purchases kitty litter for $10.4 per bag. The following information is available about these bags.

• Demand = 80 bags/week
• Order cost = $52/order
• Annual holding cost = 26% of cost per bag
• Desired cycle-service level = 90%
• Lead-time = 3 weeks
• Standard deviation of weekly demand = 15 bags

1. For the most recent review, an inventory clerk checked the inventory of kitty litter and found 320 bags. There were no open orders or backorders at the time. Determine how many units should the firm order for the periodic review system.