Question: Problem 28 Question Help O Sam's Cat Hotel operates 49 weeks per year, 5 days per week. It purchases kitty litter for $7.50 per bag.

Problem 28 Question Help O Sam's Cat Hotel

Problem 28 Question Help O Sam's Cat Hotel operates 49 weeks per year, 5 days per week. It purchases kitty litter for $7.50 per bag. The following information is available about these bags: > Demand = 65 bags/week > Order cost = $75/order > Annual holding cost = 28 percent of cost > Desired cycle-service level = 90 percent > Lead time = 2 week(s) (10 working days) > Standard deviation of weekly demand = 8 bags > Current on-hand inventory is 250 bags, with no open orders or backorders. Standard Deviation of Weekly Demand Suppose that Sam's Cat Hotel uses a P system. The average daily demand, d, is 13 bags (65/5), and the standard deviation of daily demand, Days per week standard normal table for z-values. a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ? is 3.578 bags. Refer to the The time between orders, P, should be 37 days. (Enter your response rounded to the nearest whole number.) The target inventory, T, should be bags. (Enter your response rounded to the nearest whole number.)

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