Question: Sam's Pet Hotel operates 5 2 weeks per year , 7 days per week , and uses a continuous review inventory system. It purchases kitty
Sam's Pet 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. Refer to the standard normal table for
z
values.
Demand
bags
week
Order cost
$
order
Annual holding cost
percent of cost
Desired
cycle
service levelequals
percent
Lead time
week
s
working
days
Standard deviation of weekly demand
bags
Current
on
hand inventory is
bags
with no open orders or backorders.
a
What is the
EOQ
Sam
s optimal order quantity is
bags
What would be the average time between orders
in weeks
The average time between orders is
weeks
b
What should R
be
The reorder point is
bags
Enter your response rounded to the nearest whole
number
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