Question: Sam's Cat Hotel operates 5 2 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for

Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available:
Demand =80 bags/week
Order Cost =$54/order
Annual Holding Cost =3.20bag? year
If their current order size is 550 bags (per order), how much could they save annually by adopting an EOQ based inventory policy? (Hint: Find the EOQ and then compare total cost
A) Savings would be between $10 and $100
B) Savings would be greater than $100 but less than $250
C) Savings would be greater than $250 but less than $500
D) Savings would be $500 or greater
E) There would be no savings
 Sam's Cat Hotel operates 52 weeks per year, 6 days per

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