MGMT-6085-22S Assignment #2 (worth 8%) Module 03 Economic Order Quantity (EOQ) & Re-Order Point Chrissy The Hissy Cat Hotel Chrissy The Hissy Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases cat food for $18.24 per bag. The following information is available about these bags: Demand 145 bags/week $85.00 per order Order Cost Annual Holding Cost 26% of cost Desired Cycle-Service Level 83% Lead Time 3 weeks (21 working days) Standard Deviation of weekly demand 22 bags Current on Hand Inventory 475 bags Open Orders or Backorders 0 YOUR CALCULATIONS E. The store currently uses a lot size of 600 bags (Q = 600). What would be the annual cost saved by shifting from the 600-bag lot size to the EO