Question content area Part 1 Sam's Cat Hotel operates 52 weeks per year,5 days per week, and uses a continuous review
Posted: Fri Jul 01, 2022 9:05 am
Question contentarea
Part 1
Sam's Cat Hotel operates 52 weeks per year,5 daysper week, and uses a continuous review inventory system. Itpurchases kitty litter for $11.00 per bag. The followinginformation is available about these bags. Refer to the standardnormal table
for z-values.
≻Demand = 92 bags/week
≻Order cost = $55/order
≻Annual holding cost = 30 percent of cost
≻Desired cycle-service level=98 percent
≻Lead time = 2 week(s) (10 working days)
≻Standard deviation of weekly demand = 20 bags
≻Current on-hand inventory is 300 bags, with no open orders orbackorders.
Part 2
a. What is the EOQ?
Sam's optimal order quantity is bags. (Enteryour response rounded to the nearest whole number.)
Part 3
What would be the average time between orders (inweeks)?
The average time between orders is weeks. (Enter yourresponse rounded to one decimal place.)
Part 4
b. What should R be?
The reorder point is bags. (Enter your responserounded to the nearest whole number.)
Part 1
Sam's Cat Hotel operates 52 weeks per year,5 daysper week, and uses a continuous review inventory system. Itpurchases kitty litter for $11.00 per bag. The followinginformation is available about these bags. Refer to the standardnormal table
for z-values.
≻Demand = 92 bags/week
≻Order cost = $55/order
≻Annual holding cost = 30 percent of cost
≻Desired cycle-service level=98 percent
≻Lead time = 2 week(s) (10 working days)
≻Standard deviation of weekly demand = 20 bags
≻Current on-hand inventory is 300 bags, with no open orders orbackorders.
Part 2
a. What is the EOQ?
Sam's optimal order quantity is bags. (Enteryour response rounded to the nearest whole number.)
Part 3
What would be the average time between orders (inweeks)?
The average time between orders is weeks. (Enter yourresponse rounded to one decimal place.)
Part 4
b. What should R be?
The reorder point is bags. (Enter your responserounded to the nearest whole number.)