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
5
2
weeks per
year,
7
days per
week, and uses a continuous review inventory system. It purchases kitty litter for
$
1
2
.
0
0
per bag. The following information is available about these bags. Refer to the standard normal table for
z
-
values.
Demand
=
8
5
bags
/
week
Order cost
=
$
5
8
/
order
Annual holding cost
=
3
0
percent of cost
Desired
cycle
-
service levelequals
9
9
percent
Lead time
=
2
week
(
s
)
(
1
4
working
days
)
Standard deviation of weekly demand
=
1
8
bags
Current
on
-
hand inventory is
3
0
0
bags
,
with no open orders or backorders.
a
.
What is the
EOQ?
Sam
'
s optimal order quantity is
3
7
8
bags.
What would be the average time between orders
(
in weeks
)
?
The average time between orders is
4
.
5
weeks.
b
.
What should R
be
?
The reorder point is
_
_
_
_
_
bags.
(
Enter your response rounded to the nearest whole
number.
)

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