Question: Sam ' s Pet Hotel operates weeks per year, days per week, and uses a continuous review inventory system. It purchases kitty litter for $

Sam's Pet Hotel operates weeks per year, days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal tableLOADING... for z-values.
Demand =95bags/week
Order cost=$58/order
Annual holding cost=25 percent of cost
Desired cycle-service level 92percent
Lead time=4week(s)(20working days)
Standard deviation of weekly demand=18 bags
Current on-hand inventory is 325bags, with no open orders or backorders.
Part 2
a. What is the EOQ?

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