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 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.Current onhand inventory is bags, with no open orders or backorders.a What is the EOQ? What would be the average time between orders in weeksb What should R bec An inventory withdrawal of bags was just made. Is it time to reorder?d The store currently uses a lot size of bags ie Q What is the annual holding cost of this policy? Annual ordering cost? Without calculating the EOQ, how can you conclude from these two calculations that the current lot size is too large?e What would be the annual cost saved by shifting from the bag lot size to the EOQ
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