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 $16.38

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

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 $16.38 per bag. The following information is available about these bags: Demand 125 bags/week Order Cost $75.00 per order Annual Holding Cost 27% of cost Desired Cycle-Service Level 80% Lead Time 3 weeks (21 working days) Standard Deviation of weekly demand 21 bags Current on Hand Inventory 450 bags 0 Open Orders or Backorders SHOW YOUR CALCULATIONS A. What is the Economic Order Quantity (EOQ) for Kitty Litter? B. What would be the average time between orders (in weeks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!