Answer Happy

z value
Associated service level
1.28
​90%
1.65
​95%
2.05
​98%
2.33
​99%
3.08
​99.9%
llah's Organic Pet Shop sells bags of cedar chips for pet
bedding or snacking​ (buyer's choice). The supplier has
offered Ollah the following​ terms:
Order
1−260
​bags, and the price is
​$9.25
a bag.
Order
261
or more​ bags, and the price is
​$6.50
a bag.
Annual demand is
560​,
fixed ordering costs are
​$20
per​ order, and the​ per-bag holding cost is estimated
to be around
​$19
per year.
LOADING...
Click the icon to view the table of z values.
Part 2
a. The economic order quantity for the bags is
3434.
​(Enter your response rounded to the nearest
whole​ number.)
Part 3
b. Ollah should order
enter your response here
bags at a time to take advantage of the lower cost per unit.
​(Enter your response rounded to the nearest
whole​ number.)
Part 4
c. Suppose the lead time for bags is a constant
2.2
​weeks, and average weekly demand is
11.8
​bags, with a standard deviation of
4.2
bags. If Ollah wants to maintain a
95​%
service​ level, what should her reorder point​ be?
The reorder point is
enter your response here
bags. ​(Enter your response rounded up to the nearest
whole​ number.)