Question: * X Problem 14 Is Question Help Tes Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review

* X Problem 14 Is Question Help Tes Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: > Demand = 95 bags/week > Order cost = $60.00/order > Annual holding cost-30 percent of cost > Desired cycle-service level - 80 percent > Lead time 2 weeks (12 working days) > Standard deviation of weekly demand 15 bags Current on 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 bo, owing to the distorted EOQ caused by this forecast error? The costs will be $ Ngher owing to the error in EOQ. (Enter your response rounded to two decimal places)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

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...

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...

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...

Sam's Cat Hotel operates 52 weeks per year, 5days per week, and uses a continuous review inventory system. It purchases kitty litter for$11.25per bag. The following information is available about...

Sam s Cat Hotel operates 5 2 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases Kitty Litter for $ 1 6 . 3 8 per bag. The following information is available...

please help thank you Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.75 per bag. The following...

please help thank you Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following...

12+x Consider the double integral f(x,y) dx dy. After reversing the order of integration, the integral becomes 1 y-2 21 [Tr (x, y) dx dy + (x, y) dx dy 00 10 31 + (x, y) dx dy + ]] (x, y)...

Return to the Blending Department for The Lucy Paint Company in E5- 27A. Gallons: Beginning work in process inventory...................................................0 Started...

Did Disney's effective tax rate increase or decrease from 2 0 2 1 to 2 0 2 2 ? Group of answer choices Decrease Increase

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...