Question: PetSmart operates 48 weeks per year and uses a continuous review inventory system. It purchases dry dog food for $16 per bag. The following information

PetSmart operates 48 weeks per year and uses a
PetSmart operates 48 weeks per year and uses a continuous review inventory system. It purchases dry dog food for $16 per bag. The following information is available about these bags. Refer to the standard normal table at bottom of this page. Average demand = 94 bags/week Order cost = $40/order Annual holding cost = 25 percent of the unit cost Desired cycle-service level=90 percent Lead time = 1 week constant Standard deviation of weekly demand = 16 bags Current on-hand inventory is 300 bags, with no open orders or backorders. What should be the reorder point (ROP)? rounded to the nearest whole number.) bags (Enter your response

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