$$Sam$\text{'}$s Pet Hotel operates $5252$ weeks per$$ year, $77$ days per$$ week, and uses a continuous review inventory system. It purchases kitty litter for $$$$11\mathrm{.}0011\mathrm{.}00$ per bag. The following information is available about these bags. Refer to the standard normal table LOADING... for$$ z$-$values. a$.$ What is the EOQ?

Sam's optimal order quantity is $426$ bags. $($Enter your response rounded to the nearest whole number.$)$

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

The average time between orders is $4\mathrm{.}3$ weeks. $($Enter your response rounded to one decimal place.$)$

b$.$ What should $R$ be$?$

The reorder point is $433$ bags. $($Enter your response rounded to the nearest whole number.$)$

c$.$ An inventory withdrawal of $10$ bags was just made. Is it time to reorder?

It

time to reorder.

d$.$ The store currently uses a lot size of $505$ bags $($i$.$e$.,Q=505).$ What is the annual holding cost of this policy?

The annual holding cost is $$795\mathrm{.}38.($Enter your response rounded to two decimal places.$)$

What is the annual ordering cost?

The annual ordering cost is $$566\mathrm{.}34.($Enter your response rounded to two decimal places.$)$

Without calculating the EOQ, how can you conclude from these two calculations that the current lot size is too large?

A$.$ Both quantities are appropriate.

B$.$ When $Q=505,$ the annual holding cost is larger than the ordering cost, therefore $Q$ is too large.

C$.$ When $Q=505,$ the annual holding cost is less then the ordering cost, therefore $Q$ is too small.

D$.$ There is not enough information to determine this.

e$.$ What would be the annual cost saved by shifting from the $505-$bag lot size to the EOQ?

The annual holding cost with the EOQ is $$670\mathrm{.}95.($Enter your response rounded to two decimal places.$)$

The annual ordering cost with the EOQ is $$671\mathrm{.}55.($Enter your response rounded to two decimal places.$)$

Therefore, Sam's Pet Hotel saves $$19\mathrm{.}22$ by shifting from the $505-$bag lot size to the EOQ. $($Enter your response rounded to two decimal places.$)$

follows$$Demand $=9292$bags$/$week

follows$$Order cost$=$$$5858/$order

follows$$Annual holding cost$=2929$ percent of cost

follows$$Desired $$cycle$-$service levelequals$=9292$ percent

follows$$Lead time$=44$week$($s$)(2828$ working$$ days$)$

follows$$Standard deviation of weekly demand$=1616$ bags

follows$$Current $$on$-$hand inventory is $350350$bags$,$ with no open orders or backorders.

Part $2$

a$.$ What is the$$ EOQ?

$$Sam$\text{'}$s optimal order quantity is enter your response here bags. $($Enter your response rounded to the nearest whole$$ number.$)$