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Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyer's choice). The supplier has offered Ollah the following terms: Order

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Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyer's choice). The supplier has offered Ollah the following terms: Order 1210 bags, and the price is $9.00 a bag. Order 211 or more bags, and the price is $6.50 a bag. Annual demand is 670 , fixed ordering costs are $5 per order, and the per-bag holding cost is estimated to be around $4 per year. Click the icon to view the table of z values. a. The economic order quantity for the bags is ( Enter your response rounded to the nearest whole number.) b. Ollah should order bags at a time to take advantage of the lower cost per unit. (Enter your response rounded to the nearest whole number.) c. Suppose the lead time for bags is a constant 1.1 weeks, and average weekly demand is 13.8 bags, with a standard deviation of 3.4 bags. If Ollah wants to maintain a 98% service level, what should her reorder point be? The reorder point is bags. (Enter your response rounded up to the nearest whole number.) More Info

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