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 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 tableLOADING... for zvalues.
followsDemand bagsweek
followsOrder cost$order
followsAnnual holding cost percent of cost
followsDesired cycleservice levelequals percent
followsLead timeweeks working days
followsStandard deviation of weekly demand bags
followsCurrent onhand inventory is bags with no open orders or backorders.
Part
a What is the EOQ?
Sams optimal order quantity is
bags. Enter your response rounded to the nearest whole number.
Part
What would be the average time between ordersin weeks
The average time between orders is
weeks. Enter your response rounded to one decimal place.
Part
b What should R be
The reorder point is
bags. Enter your response rounded to the nearest whole number.
Part
c An inventory withdrawal of bags was just made. Is it time to reorder?
It
is not
time to reorder.
Part
d The store currently uses a lot size of bagsie Qequals What is the annual holding cost of this policy?
The annual holding cost is $
Enter your response rounded to two decimal places.
Part
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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