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Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases Kitty Litter for $16.38
Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases Kitty Litter for $16.38 per bag. The following information is available about these bags: Demand 125 bags/week Order Cost $75.00 per order Annual Holding Cost 27% of cost Desired Cycle-Service Level 80% Lead Time 3 weeks (21 working days) Standard Deviation of weekly demand 21 bags Current on Hand Inventory 450 bags 0 Open Orders or Backorders SHOW YOUR CALCULATIONS A. What is the Economic Order Quantity (EOQ) for Kitty Litter? B. What would be the average time between orders (in weeks)
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