Question: Sam's Cat Hotel operates 52 weeks per year, 7 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, 7

Sam's Cat Hotel operates 52 weeks per year, 7 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 = 92 bags/week > Order cost = $57/order > Annual holding cost = 26 percent of cost > Desired cycle-service level = 99 percent > Lead time = 2 week(s) (14 working days) > Standard deviation of weekly demand = 13 bags > Current on-hand inventory is 315 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is bags. (Enter your response rounded to the nearest whole number.) a. What is the EOQ? Sam's optimal order quantity is --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 -------Weeks (Enter your response rounded to one decimal place.) b. What should be? The reorder point is ------bags. (Enter your response rounded to the nearest whole number) c. An inventory withdrawal of 10 bags was just made. Is it time to reorder? It is, is not) time to reorder. d. The store currently uses a lot size of 495 bags (ie, Q equals=495). What is the annual holding cost of this policy? The annual holding cost is $------- - (Enter your response rounded to two decimal places.) What is the annual ordering cost? The annual ordering cost is 5- (Enter your response rounded to two decimal places.) e. What would be the annual cost saved by shifting from the 495-bag lot size to the EOQ? e. What would be the annual cost saved by shifting from the 495-bag lot size to the EOQ? The annual holding cost with the EOQ is S--------- (Enter your response rounded to two decimal places.) The annual ordering cost with the EOQ isS- -(Enter your response rounded to two decimal places.) Therefore, Sam's Cat Hotel saves- (Enter your response rounded to two decimal places.)

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