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 $10.75 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 = 29 percent of cost > Desired cycle-service level = 92 percent > Lead time = 4 week(s) (20 working days) > Standard deviation of weekly demand = 13 bags > Current on-hand inventory is 350 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is bags. (Enter your response rounded to the nearest whole number.)

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 $10.75 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 = 29 percent of cost > Desired cycle-service level = 92 percent > Lead time = 4 week(s) (20 working days) > Standard deviation of weekly demand = 13 bags > Current on-hand inventory is 350 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is bags. (Enter your response rounded to the nearest whole number.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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