Question: please help by showing work to solve the problem. Sam's Cat Hotel operates 52 weeks per year and 6 days a week. It purchases kitty

please help by showing work to solve the problem.

Sam's Cat Hotel operates 52 weeks per year and 6 days a week. It purchases kitty litter for $ 11.70 per bag. The following information is available about these bags: Demend : 90 bags/week Order cost;$54/order Annual holding cost : 27% of unit cost Lead time : 3 weeks Desired Safety stock : 360 bags

a. What is the EOQ?

b. The company currently uses a lot size of 500 bags (i.e. Q:500). What would be the annual cost saved by shifting from the 500-bag lot size to the EOQ?

c. What is the reorder point?

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