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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 1140 bags, and the price is $5.50a bag. Order 141 or more bags, and the price is $4.25 a bag. Annual demand is 690 , fixed ordering costs are $8 per order, and the per-bag holding cost is estimated to be around $3 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 12.3 bags, with a standard deviation of 2.2 bags. If Ollah wants to maintain a 95% 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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