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.)

Bill has worked at a manufacturing plant as a Maintenance Technician for the past 30 years, he started when he was 28. When he began, Bill worked the 3rd shift, which was the least desirable of all the shifts (for him personally). It took him nearly 5 years to move to a 1st shift job and he has worked that shift ever since and has no desire to work a different shift. Because of his tenure and performance, Bill tends to work autonomously with little direction from his supervisor. Bill has had the same supervisor for the past 10 years, however his supervisor recently retired. The company replaced him with John, an “outside hire” who just graduated from college. John has a very different management style than his former supervisor and in Bill’s opinion, “micro-manages” him.  Since John started, Bill noticed that some of his more technical/advanced job duties were being reassigned to other, less-experienced maintenance technicians. Bill is concerned about this because the work that he is…

Exercise 1 Your Customers Are Using My Parking Lot! You own a hardware store that is located in a strip mall. Three months ago an Italian restaurant opened next door. Parking is limited and each respective business in the strip mall has a designated number of parking spaces in front. This is generally not a problem because your store has more customers during the day, while the restaurant is busier at night. The problem is on Friday and Saturday nights when your store is open later and the restaurant is busier. You are concerned because business at the restaurant has been increasing as the restaurant becomes more well known. Instructions: Implications of Negotiation

Scenario Office Equipment, Inc. (OEI) leases automatic mailing machines to business customers in Fort Wayne, Indiana. The company built its success on a reputation of providing timely maintenance and repair service. Each OEI service contract states that a service technician will arrive at a customer’s business site within an average of 3 hours from the time that the customer notifies OEI of an equipment problem. Currently, OEI has 10 customers with service contracts. One service technician is responsible for handling all service calls. A statistical analysis of historical service records indicates that a customer requests a service call at an average rate of one call per 50 hours of operation. If the service technician is available when a customer calls for service, it takes the technician an average of 1 hour of travel time to reach the customer’s office and an average of 1.5 hours to complete the repair service. However, if the service technician is busy with another customer when a…