Problem 1 Chapter 9: Sam’s Cat Hotel operates 52 weeks per year and uses a continuous review inventory system. It purchases kitty litter for $10.75 per bag. The following information is available about these bags Demand 85 bags/week Order cost $57/order Annual holding cost = 26% of cost per bag Desired cycle-service level = 90% Lead-time 2 weeks Standard deviation of weekly demand = 18 bags a) What is the economic order quantity (EOQ) for kitty litter? b) What would be the average time between orders (in weeks)? c) What should the reorder point R be? d) Assume that the firm decides to change to the periodic review system to control the inventory for kitty litter. The time between reviews, P, is the average time between orders as calculated in part b. What should be the target inventory level T? For the most recent review, an inventory clerk checked the inventory of kitty litter and found e) 310 bags. There were no open orders or backorders at the time. Determine how many units should the firm order for the periodic review system