Question: Sam s Cat Hotel operates 5 2 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases Kitty Litter

Sams Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases Kitty Litter for $16.48 per bag. The following information is available about these bags:
Demand 135 bags/week
Order Cost $75.50 per order
Annual Holding Cost 28.50% of cost
Desired Cycle-Service Level 80%
Lead Time 3 weeks (21 working days)
Standard Deviation of weekly demand 21 bags
Current on Hand Inventory 440 bags
Open Orders or Backorders 0

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