Question: Sam ' s Pet Hotel operates 5 2 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases kitty
Sams Pet Hotel operates weeks per year, days per week, and uses a continuous review inventory system. It purchases kitty litter for $ per bag. The following information is available about these bags. Refer to the standard normal tablefor zvalues.
Demand bagsweek
Order cost$order
Annual holding cost percent of cost
Desired cycleservice level percent
Lead timeweeks working days
Standard deviation of weekly demand bags
Current onhand inventory is bags with no open orders or backorders.
What is reorder point?
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