!!!!!!!!!!!!!!!! JUST QUESTION (E) ALL VALUES ARE CORRECT !!!!!!!!!!!!!!!!!!!!!

Please show the formula or rationale!

Thank You!

Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.50 per bag. The following information is available about these bags. Refer to the standard normal table for z-val > Demand = 95 bags/week > Order cost = $56/order > Annual holding cost = 29 percent of cost > Desired cycle-service level = 98 percent > Lead time = 2 week(s) (10 working days) > Standard deviation of weekly demand = 13 bags > Current on-hand inventory is 325 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is 407 bags. (Enter your response rounded to the nearest whole number.) What would be the average time between orders (in weeks)? The average time between orders is 4.3 weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is 228 bags. (Enter your response rounded to the nearest whole number.) c. An inventory withdrawal of 10 bags was just made. Is it time to reorder? It is not time to reorder. d. The store currently uses a lot size of 505 bags (i.e., Q =505). What is the annual holding cost of this policy? The annual holding cost is $ 842.09. (Enter your response rounded to two decimal places.) What is the annual ordering cost? The annual ordering cost is $ 547.80. (Enter your response rounded to two decimal places.) Without calculating the EOQ, how can you conclude from these two calculations that the current lot size is too large? O A. There is not enough information to determine this. O B. When Q = 505, the annual holding cost is less then the ordering cost, therefore Q is too small. O C. Both quantities are appropriate. D. When Q = 505, the annual holding cost is larger than the ordering cost, therefore Q is too large. e. What would be the annual cost saved by shifting from the 505-bag lot size to the EOQ? The annual holding cost with the EOQ is $ (Enter your response rounded to two decimal places.)