The answer to letter e. is needed.

Sam's Cat Hotell operates 52 weeks per year, 7 days per week, and uses a contuous review inventory system. It purchased by itter for $11.00 per bag The flowing information is valable about these bags Refer to the standardimaktable for z values >Demand = 95 Dags weak Order cost sadder Annual hoiding cost = 20 percent of cost Desired cycle-service level 96 percent > Lead time tweets) 28 working days! Standard devation of weeklyderiand = 16 Current on and mentory is 310 bags with no open orders or backorders a. What is the EOQ? Sam's optimal order quantity is 424 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 4.5 weeks. (Enter your response rounded to one decimal place.) b. What should be? The reorder point is 436 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 is time to reorder. d. The store currently uses a lot size of 495 bags (1.e., Q = 495) What is the annual holding cost of this policy? The annual holding cost is $ 797.50 (Enter your response rounded to two decimal places) What is the annual ordering cost? The annual ordering cost is $ 578.82. (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. Both quantities are appropriate. B. When Q = 495, the annual holding cost is larger than the ordering cost, therefore Q is too large OC. When Q = 495, the annual holding cost is less then the ordering cost, therefore Q is too small. OD. There is not enough information to determine this. e. What would be the annual cost saved by shifting from the 495-bag lot size to the EOQ? The annual holding cost with the EOQ is $(Enter your response rounded to two decimal places.)