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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 $11.00
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 $11.00 per bag. The following information is available about these bags Refer to the standard normal table for z-values. -Demand 100 bags/week -Order cost $56/order > Annual holding cost = 26 percent of cost > Desired cycle-service level = 90 percent >Lead time=4 week(s) (28 working days) >Standard deviation of weekly demand=16 bags >Current on-hand inventory is 350 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is bags. (Enter your response rounded to the nearest whole number.) Sam's Cat Hotel operates 50 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: >Demand=95 bags/week > Order cost $50.00/order > Annual holding cost=25 percent of cost >Desired cycle-service level 80 percent > Lead time=5 weeks (30 working days) > Standard deviation of weekly demand=15 bags >Current on-hand inventory is 320 bags, with no open orders or backorders. ni a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? n.5 The costs will be $higher owing to the error in EOQ (Enter your response rounded to two decimal places) In a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 310 pints per week. The lead time is 8 weeks. The standard deviation of weekly demand is 10 pints. Refer to the standard normal table for z-values. a. The standard deviation of demand during the 8-week lead time is pints. (Enter your response rounded to the nearest whole number)
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