Question: Sam's Pet Hotel operates 5 2 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for

Sam's Pet Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.75 per bag. The following information is available about these bags. Refer to the standard normal tableLOADING... for z-values.
followsDemand =80bags/week
followsOrder cost=$55/order
followsAnnual holding cost=25 percent of cost
followsDesired cycle-service levelequals99 percent
followsLead time=1week(s)(5 working days)
followsStandard deviation of weekly demand=13 bags
followsCurrent on-hand inventory is 300bags, with no open orders or backorders.
Part 2
a. What is the EOQ?
Sam's optimal order quantity is
413 bags. (Enter your response rounded to the nearest whole number.)
Part 3
What would be the average time between orders(in weeks)?
The average time between orders is
5.2 weeks. (Enter your response rounded to one decimal place.)
Part 4
b. What should R be?
The reorder point is
110 bags. (Enter your response rounded to the nearest whole number.)
Part 5
c. An inventory withdrawal of 10 bags was just made. Is it time to reorder?
It
is not
time to reorder.
Part 6
d. The store currently uses a lot size of 505 bags(i.e., Qequals505). What is the annual holding cost of this policy?
The annual holding cost is $
678.59.(Enter your response rounded to two decimal places.)
Part 7
What is the annual ordering cost?
The annual ordering cost is $
enter your response here. (Enter your response rounded to two decimal places.)

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