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 $11.50 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. > Demand = 92 bags/week > Order cost = $56/order > Annual holding cost = 25 percent of cost > Desired cycle-service level = 98 percent > Lead time = 2 week(s) (14 working days) > Standard deviation of weekly demand = 16 bags > Current on-hand inventory is 315 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is 432 bags. (Enter your response rounded to the nearest whole number.) What would be the average time between orders (in weeks)? The average time between orders is 4.7 weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is _________ bags. (Enter your response rounded to the nearest whole number.)
