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Demand =96 bags/week > Order cost =$58 order > Annual holding cost =25 percent of cost > Desired cycle-service level =98 percent > Lead time
Demand =96 bags/week > Order cost =$58 order > Annual holding cost =25 percent of cost > Desired cycle-service level =98 percent > Lead time =4 week ( s) ( 28 working days) > Standard deviation of weekly demand =10 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.) What would be the average time between orders (in weeks)? The average time between orders is weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is bags. (Enter your response rounded to the nearest whole number.)
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