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Ollah ' s Organic Pet Shop sells about bags of free - range dog biscuits every year. The fixed ordering cost is $ , and
Ollahs Organic Pet Shop sells about bags of freerange dog biscuits every year. The fixed ordering cost is $ and the cost of holding a bag in inventory for a year is $
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Part
a What is the economic order quantity for the biscuits?
The EOQ is
enter your response here. Enter your response rounded to the nearest whole number.
Part
b Suppose Ollah decides to order bags at a time. What would the total ordering and holding costs for the year beFor this problem, don't consider safety stock when calculating holding costs.
The total ordering and holding costs are $
enter your response here. Enter your response rounded to the nearest dollar.
Part
c Average weekly demand for freerange dog biscuits is bags per week, with a standard deviation of bags. Ollah uses a continuous inventory review system to manage inventory of the biscuits. Ollah wants to set the reorder point high enough that there is only a chance of running out before the next order comes in Assuming that the lead time is a constant weeks what should the reorder point be
The reorder point is
bags. Enter your response rounded to the nearest whole number.
Part
d Suppose Ollah decides to use a periodic review system to manage the freerange dog biscuits, with the vendor checking inventory levels every week. Under this scenario, what would the restocking level be assuming the same demand and lead time characteristics listed in part c and the same service level? Note that because the standard deviation of weekly demand is basic statistics tells us the standard deviation of demand over weeks will be
The restocking level is
bags. Enter your response rounded up to the nearest whole n
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