Question: Need help Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter

Need help

Need help Sam's Cat Hotel operates 52 weeks per year, 5 days

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-values. - Demand = 100 bags/week > Order cost = $57/order > Annual holding cost = 29 percent of cost > Desired cycle-service level = 99 percent > Lead time = 4 week(s) (20 working days) > Standard deviation of weekly demand = 13 bags > Current on-hand inventory is 350 bags, with no open orders or backorders a. What is the EOQ? Sam's optimal order quantity is 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 weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is 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? time to reorder. d. The store currently uses a lot size of 505 bags (ie., Q-505). What is the annual holding cost of this policy? The annual holding cost is $ (Enter your response rounded to two decimal places.) What is the annual ordering cost

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!