Question: Problem 3. (60 points total) (Chapter 9) Bob's apple store utilizes a continuous review system. Current on had inventory is 295 bags of apples, with

Problem 3. (60 points total) (Chapter 9) Bob's

Problem 3. (60 points total) (Chapter 9) Bob's apple store utilizes a continuous review system. Current on had inventory is 295 bags of apples, with no open orders or backorders. He buys apples year round, 52 weeks a year, 5 days a week. He buys apples for $10.20 a bag. The following information is available about these bags of apples: Demand=80 bags/week Order cost = $48/order Annual Holding cost = 32 percent of the cost of a bag Desired cycle-service level = 87 percent Lead time = 2 weeks (10 working days) Standard deviation of weekly demand = 12 bags Go to two decimal points in all calculations. answer 3A. What is the annual holding cost (H) per unit expressed in dollars? (two decimal points) 10 points answer 3B. What is the annual demand (D) of bags of apples? (two decimal points) 10 points Hint: asking for annual demand, not weekly demand ---ans. 3C. What is order cost (S) expressed in dollars? (per order) (two decimal points) 10 points answer 3D. What is the EOQ? (I want a number here, not a noun) (two decimal points) 10 points answer (weeks) 3E. What would the average TBO (time between orders) (in weeks)? (two decimal points) 10 points answer 3F. What is the safety stock? (I want a number here) (two decimal points) 5 points answer 3G. What should R (re-order point) be? (two decimal points) 5 points

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