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Part $1$

$$Sam$\text{'}$s Pet Hotel operates $52$ weeks per$$ year, $6$ days per$$ week, and uses a continuous review inventory system. It purchases kitty litter for $$$$13\mathrm{.}00$ per bag. The following information is available about these$$ bags:

follows$$Demandequals$=80$ bags$/$week

follows$$Order costequals$=$$$60\mathrm{.}00/$order

follows$$Annual holding costequals$=30$ percent of cost

follows$$Desired $$cycle$-$service levelequals$=80$ percent

follows$$Lead timeequals$=5$ weeks $(30$ working$$ days$)$

follows$$Standard deviation of weekly demandequals$=15$ bags

follows$$Current $$on$-$hand inventory is $320$bags$,$ with no open orders or backorders.

Part $2$

a$.$ Suppose that the weekly demand forecast of $80$ bags is incorrect and actual demand averages only $55$ bags per week. How much higher will total costs$$ be$,$ owing to the distorted EOQ caused by this forecast$$ error?

The costs will be $$$enter your response here higher owing to the error in EOQ. $($Enter your response rounded to two decimal$$ places.$)$