Sam$$s Cat Hotel

Sam$$s Cat Hotel operates $52$ weeks per year, $7$ days per week, and uses a continuous review inventory system. It purchases Kitty Litter for $$16\mathrm{.}48$ per bag. The following information is available about these bags:

Demand

$135$ bags$/$week

Order Cost

$$75\mathrm{.}50$ per order

Annual Holding Cost

$28\mathrm{.}50\%$ 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

$0$

SHOW YOUR CALCULATIONS

A$.$ What is the Economic Order Quantity $($EOQ$)$ for Kitty Litter?

B$.$ What would be the average time between orders $($in weeks$)?$

C$.$ What would the Re$-$order Point $($R$))$ be$?$

D$.$ An inventory withdrawal of $60$ bags was just made... Is it time to re$-$order?

E$.$ The store currently uses a lot size of $750$ bags $($Q $=750).$ What would be the annual cost saved by shifting from the $750$ bag lot size to the EOQ?

Please use this form and fill in the blanks for the $5$ questions.

BE SURE TO SHOW YOUR CALCULATIONS

ChatGPT and other forms of AI are not allowed to be used on this assignment.