Save -- Homework: HW-10 (Continuous Review Model, 45 pts, 3 att) der 1 Score: 0 of 8 pls 2 of 6 (6 complete) HW Score: 55 89%, 25 15 of 45 pts when 0 X Problem 14 Question Help 16 Sam's Cat Hotel operates 48 weeks per year 6 days per week, and uses a continuous reviaw inventory system. It purchases kitty litter for $12,00 per bag The following information is available about these bags Demand 95 bagu/week lewa Order cost $60.00/order Annual holding cost-35 percent of cont Sew Ed Desired cycle-service level 80 percent Lead time 4 weeks (24 working days) Calcul Standard deviation of weekly demand = 15 bags >Currenton-hand inventory is 320 bags, with no open orders or backorders a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week How much higher will total costs be owing to 214 the distorted EOQ caused by this forecast error? So, We The costs will be $ 9.44 higher owing to the error in EOD. (Enter your response founded to two decimal places) Current b. Suppose that actual demand is 75 bags but that ordering costs are cut to only S9 00 by using the Internet to autonsate order placing. However the buyer does not tell anyone, and the EO is not adjusted to reflect this reduction in S How much higher will total costs be compared to what they could be if the EOQ were adjusted? The costs will be $higher owing to the error in EOC - Enter your response rounded to two decimal places) Le | Enter your answer in the answer box and then accreditanswer All parts showing Demar including safety rock = 1907,81 208 which is less than catering in hand e