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It is due today. Please I need help The images are how you are going to do it.  For b, I thought the answer for the reorder point was 132, but it is false(not correct). I find a, but i need help with b. 1. Sam's Cat Hotel operates 52 weeks per​ year, 5 days per​ week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal table for​ z-values. ≻Demand ​= 100 bags/week ≻Order cost​ = $58​/order ≻Annual holding cost​ = 29 percent of cost ≻Desired cycle-service level=92 percent ≻Lead time​ = 1 week(s) (5 working​ days) ≻Standard deviation of weekly demand​ = 18 bags ≻Current ​on-hand inventory is 300 ​bags, with no open orders or backorders. a. What is the​ EOQ?   ​Sam's optimal order quantity is 445 bags. ​(Enter your response rounded to the nearest whole​ number.) What would be the average time between orders​ (in weeks)?   The average time between orders is 4.5 weeks. ​(Enter your response rounded to one decimal​ place.)   b. What should R ​be? The reorder point is what? bags. ​(Enter your response rounded to the nearest whole​ number.)

It is due today. Please I need help The images are how you are going to do it.  For b, I thought the answer for the reorder point was 132, but it is false(not correct). I find a, but i need help with b. 1. Sam's Cat Hotel operates 52 weeks per​ year, 5 days per​ week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal table for​ z-values. ≻Demand ​= 100 bags/week ≻Order cost​ = $58​/order ≻Annual holding cost​ = 29 percent of cost ≻Desired cycle-service level=92 percent ≻Lead time​ = 1 week(s) (5 working​ days) ≻Standard deviation of weekly demand​ = 18 bags ≻Current ​on-hand inventory is 300 ​bags, with no open orders or backorders. a. What is the​ EOQ?   ​Sam's optimal order quantity is 445 bags. ​(Enter your response rounded to the nearest whole​ number.) What would be the average time between orders​ (in weeks)?   The average time between orders is 4.5 weeks. ​(Enter your response rounded to one decimal​ place.)   b. What should R ​be? The reorder point is what? bags. ​(Enter your response rounded to the nearest whole​ number.)

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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It is due today. Please I need help

The images are how you are going to do it. 

For b, I thought the answer for the reorder point was 132, but it is false(not correct).

I find a, but i need help with b.

1. Sam's Cat Hotel operates 52 weeks per​ year, 5 days per​ week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal table for​ z-values.

≻Demand ​= 100 bags/week
≻Order cost​ = $58​/order
≻Annual holding cost​ = 29 percent of cost
≻Desired cycle-service level=92 percent
≻Lead time​ = 1 week(s) (5 working​ days)
≻Standard deviation of weekly demand​ = 18 bags
≻Current ​on-hand inventory is 300 ​bags, with no open orders or backorders.
a. What is the​ EOQ?
 
​Sam's optimal order quantity is 445 bags. ​(Enter your response rounded to the nearest whole​ number.)
What would be the average time between orders​ (in weeks)?
 
The average time between orders is 4.5 weeks. ​(Enter your response rounded to one decimal​ place.)
 
b. What should R ​be?
The reorder point is what? bags. ​(Enter your response rounded to the nearest whole​ number.)
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 $11.00 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. > Demand = 85 bags/week > Order cost = $55/order > Annual holding cost = 25 percent of cost > Desired cycle-service level = 99 percent > Lead time = 2 week(s) (14 working days) > Standard deviation of weekly demand = 13 bags > Current on-hand inventory is 310 bags, with no open orders or backorders. a. What is the EOQ? The economic order quantity is: 2DS EOQ = where D is the annual demand, in this case D = (85x 52) = 4,420, S is the ordering cost, in this case S = 55, which is given in the problem statement, and His the holding cost, in this case H = (0.25 × 11.00) = $2.75. 2x4,420x 55 Sam's optimal order quantity is 420 bags. 2.75 What would be the average time between orders (in weeks)? The average time between orders, expressed in weeks, is: EOQ TBOE0Q D where EOC is the economic order quantity and D is demand in bags per week. 420 The average time between orders is 4.9 weeks. 85
Transcribed Image Text: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 $11.00 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. > Demand = 85 bags/week > Order cost = $55/order > Annual holding cost = 25 percent of cost > Desired cycle-service level = 99 percent > Lead time = 2 week(s) (14 working days) > Standard deviation of weekly demand = 13 bags > Current on-hand inventory is 310 bags, with no open orders or backorders. a. What is the EOQ? The economic order quantity is: 2DS EOQ = where D is the annual demand, in this case D = (85x 52) = 4,420, S is the ordering cost, in this case S = 55, which is given in the problem statement, and His the holding cost, in this case H = (0.25 × 11.00) = $2.75. 2x4,420x 55 Sam's optimal order quantity is 420 bags. 2.75 What would be the average time between orders (in weeks)? The average time between orders, expressed in weeks, is: EOQ TBOE0Q D where EOC is the economic order quantity and D is demand in bags per week. 420 The average time between orders is 4.9 weeks. 85
b. What should R be? The reorder point is: R=dL + Safety Stock, where d is demand in bags per week and L is lead time in weeks. dL = 85 x 2 = 170 bags. The safety stock is: safety stock = zodLT. where oLT =0g VT, o, is the standard deviation of weekly demand in bags, and L is lead time in weeks. The problem tells us we have a desired cycle-service level of 99 percent. Using the Normal Distribution Chart, z is determined to be 2.33. Next, odLT = od V[ = 13/2 = 18.38. The safety stock is (2.33x 18.38) = 43. The reorder point is 170 + 43 = 213 bags.
Transcribed Image Text:b. What should R be? The reorder point is: R=dL + Safety Stock, where d is demand in bags per week and L is lead time in weeks. dL = 85 x 2 = 170 bags. The safety stock is: safety stock = zodLT. where oLT =0g VT, o, is the standard deviation of weekly demand in bags, and L is lead time in weeks. The problem tells us we have a desired cycle-service level of 99 percent. Using the Normal Distribution Chart, z is determined to be 2.33. Next, odLT = od V[ = 13/2 = 18.38. The safety stock is (2.33x 18.38) = 43. The reorder point is 170 + 43 = 213 bags.
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