standard normal table for $z-$values.

$>$ Demand $=92$ bags$/$week

$>$ Order cost $=$$$\frac{58}{?}$ order

$>$ Annual holding cost $=25$ percent of cost

$>$ Desired cycle$-$service level $=98$ percent

$>$ Lead time $=1$ week$($s$)(5$ working days$)$

$>$ Standard deviation of weekly demand $=13$ bags

$>$ Current on$-$hand inventory is $310$ bags, with no open orders or backorders.

a$.$ What is the EOQ?

Sam's optimal order quantity is $$ bags. $($Enter your response rounded to the nearest whole number.$)$

What would be the average time between orders $($in weeks$)?$

The average time between orders is weeks. $($Enter your response rounded to one decimal place.$)$

b$.$ What should $R$ be$?$

The reorder point is bags. $($Enter your response rounded to the nearest whole number.$)$

c$.$ An inventory withdrawal of $10$ bags was just made. Is it time to reorder?

It

time to reorder.

d$.$ The store currently uses a lot size of $480$ bags $($i$.$e$.,Q=480).$ What is the annual holding cost of this policy?

The annual holding cost is $$.($Enter your response rounded to two decimal places.$)$

What is the annual ordering cost?

The annual ordering cost is $$.($Enter your response rounded to two decimal places.$)$

Without calculating the EOQ, how can you conclude from these two calculations that the current lot size is too large?

A$.$ When $Q=480,$ the annual holding cost is larger than the ordering cost, therefore $Q$ is too large.

B$.$ There is not enough information to determine this.

C$.$ When $Q=480,$ the annual holding cost is less then the ordering cost, therefore $Q$ is too small.

D$.$ Both quantities are appropriate.

e$.$ What would be the annual cost saved by shifting from the $480-$bag lot size to the EOQ?

The annual holding cost with the EOQ is $ $($Enter your response rounded to two decimal places.$)$

The annual ordering cost with the EOQ is $$.($Enter your response rounded to two decimal places.$)$

Therefore, Sam's Pet Hotel saves $$$ by shifting from the $480-$bag lot size to the EOQ. $($Enter your response rounded to two decimal places.$)$