Question: need the correct answers because this is incorrect Homework. IVIU Iww.y 0 Score: 0 of 6 pts 3 of 9 (8 complete) Problem 14 Question

need the correct answers because this is incorrect need the correct answers because this is
Homework. IVIU Iww.y 0 Score: 0 of 6 pts 3 of 9 (8 complete) Problem 14 Question Help Sam's Cat Hotel operates 49 weeks per year, 6 days per week, and uses a continuous review inventory system It purchases kitty er for $11.00 per bag The following information is available about these bags Demand = 75 bags/week Order cost=560.00/order Annual holding cost 20 percent of cost Desired cycle-service level = 80 percent Lead time = 4 weeks (24 working days) Standard deviation of weekly demand 15 bags > Current on hand inventory is 320 bags, with no open orders or backorders a. Suppose that the weekly demand forecast of 75 bags is incorrect and actual demand averages only 50 bags per week. How much higher wil total costs be owing to the distorted ECO caused by this forecast error? The costs will be $ 180,75 higher owing to the error in EOQ. (Enter your response rounded to two decimal places) Final Check eck

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!