MGMT-6085-22S Assignment #2 (worth 8%) Module 03 Economic Order Quantity (EOQ) & Re-Order Point Chrissy The Missy 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 745 bags/week Order Cost $85.00 per order Annual Holding Cost 26% of cost Desired Cycle-Service Level Lead Time 3 weeks 2 working days) Standard Deviation of weekly demand Current on Hand Inventory Open Orders or Backorders 22 bags 475 bags SHOW YOUR CALCULATIONS A. What is the Economic Order Quantity (EOQ) for cat food? B. What would be the average time between orders (in weeks)? c. What would the Re-order Point (R)) be? D. An inventory withdrawal of 70 bags was just made... Is it time to re-order? 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 EOQ? NOTE: Your report should be 3 to 5 pages in length. Please USE THIS FORM, fill in the blanks for the 5 questions, and upload to SUBMISSIONS before 10 pm on May 21st Sorry... NO extensions. YOU MUST SHOW YOUR CALCULATIONS TO EARN FULL MARKS