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PetSmart operates 48 weeks per year and uses a continuous review inventory system. It purchases dry dog food for $16 per bag. The following information
PetSmart operates 48 weeks per year and uses a continuous review inventory system. It purchases dry dog food for $16 per bag. The following information is available about these bags. Refer to the standard normal table at bottom of this page. Average demand =94 bags / week Order cost =$40/ order Annual holding cost =25 percent of the unit cost Desired cycle-service level =89.97 percent Lead time =1 week constant Standard deviation of weekly demand =16 bags Current on-hand inventory is 300 bags, with no open orders or backorders. What is the EOQ? (Enter your response rounded to the nearest whole number.)
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