Question: Sam s Pet Hotel operates 5 2 weeks per year, 6 days per week, and uses a continuous review inventory system.It purchases kitty litter for
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. Demand bagsweek Order cost $order Annual holding cost percent of cost Desired cycle@service level percent Lead time weeks working days Standard deviation of weekly demand bags Current onhand inventory is bags, with no openorders or backorders.
Consider again the kitty litter ordering policy for SamsPet Hotel in Problem
a Suppose that the weekly demand forecast of bags is incorrect and actual demand averages only bags per week. How much higher will total costs be owing to the distorted EOQ caused by this forecast error? Please show excel steps
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