Question: PetSmart operates 50 weeks per year and uses a continuous review inventory system. It purchases dry dog food for $12 per bag. The following information
PetSmart operates 50 weeks per year and uses a continuous review inventory system. It purchases dry dog food for $12 per bag. The following information is avallable about these bags. Refer to the standard normal table at bottom of this page. - Average demand =85 bags / week - Order cost =$30 /order - Arnual holding cost =25 percent of the unit cost - Desired cycle-service level-95.25 percent - Lead time =4 weeks constant - Standard deviation of weekly demand =9 bags - Current on-hand irventory is 300 bags, with no open orders or backorders What should be the reorder point (ROP)? (Round your response to the nearest whole number)
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