Question $3,$ Problem $13$

HW Score: $35\mathrm{.}23\%,1\mathrm{.}41$ of $4$

Part $1$ of $10$

points

Points: $0$ of $1$

Sam's Pet Hotel operates $52$ weeks per year, $7$ days per week, and uses a continuous review inventory system. It purchases kitty litter for $$10\mathrm{.}75$ per bag. The following information is available about these bags. Refer to the standard normal table for z$-$values.

$>$ Demand $=80$ bags$/$week

$>$ Order cost $=$$$\frac{56}{?}$ order

$>$ Annual holding cost $=26$ percent of cost

$>$ Desired cycle$-$service level $=96$ percent

$>$ Lead time $=2$ week$($s$)(14$ working days$)$

$>$ Standard deviation of weekly demand $=20$ bags

$>$ Current on$-$hand inventory is $325$ bags, with no open orders or backorders.

a$.$ What is the EOQ?

Sam's optimal order quantity is

bags. $($Enter your response rounded to the nearest whole number.$)$