Question: What does SQRTstand for, how did you get it, and how did you get the SD? I appreciate you breaking it down further for me.

What does SQRTstand for, how did you get it, and how did you get the SD? I appreciate you breaking it down further for me. Thanks.

Chapter 9: Sam's Cat Hotel operates 52 weeks per year and uses a continuous review inventory system. It purchases kitty litter for $10.4 per bag. The following information is available about these bags.

Demand = 80 bags/week
Order cost = $52/order
Annual holding cost = 26% of the cost per bag
Desired cycle-service level = 90%
Lead-time = 3 weeks
The standard deviation of weekly demand = 15 bags
Question: What should the reorder point R be?

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