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What is the EOQ? (Enter your response rounded to the nearest whole number.)

What is the EOQ? (Enter your response rounded to the nearest whole number.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 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.)
Transcribed Image Text: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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