Answer Happy

Ollah's Organic Pet Shop sells about 3,250 bags of free-range dog biscuits every year. The fixed ordering cost is $29, and the cost of holding a bag in inventory for a year is $1.00. Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is 434. (Enter your response rounded to the nearest whole number.) b. Suppose Ollah decides to order 100 bags at a time. What would the total ordering and holding costs for the year be? (For this problem, don't consider safety stock when calculating holding costs.) The total ordering and holding costs are $993. (Enter your response rounded to the nearest dollar.) c. Average weekly demand for free-range dog biscuits is 74 bags per week, with a standard deviation of 22 bags. Ollah uses a continuous inventory review system to manage inventory of the biscuits. Ollah wants to set the reorder point high enough that there is only a 10% chance of running in. Assuming that the lead time is a constant 2 weeks, what should the reorder point be? X The reorder point is bags. (Enter your response rounded to the nearest whole number.) Reference Associated service level z value 0.84 80% 1.28 90% 1.65 95% 2.33 99% 3.08 99.9% before the next order comes