Question: Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00
Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag. The following information is available about these bags. Refer to the standard normal table for z-values.
Demand = 95 bags/week
Order cost = $57/order
Annual holding cost = 26 percent of cost
Desired cycle-service level = 90 percent
Lead time = 2 week(s) (10 working days)
Standard deviation of weekly demand = 16 bags
Current on-hand inventory is 325 bags, with no open orders or backorders.
a. What is the EOQ?
Sam's optimal order quantity is 444 bags. (Enter your response rounded to the nearest whole number.)
What would be the average time between orders (in weeks)?
The average time between orders is 4.7 weeks. (Enter your response rounded to one decimal place.)
b. What should R be?
The reorder point is ____ bags. (Enter your response rounded to the nearest whole number.)
What is the answer for part B? and how do you find the 90% on the standard normal table? Please write legibly please and thank you
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