Question: Problem 28 Question Help Sam's Cat Hotel operates 48 weeks per year, 6 days per week. It purchases kitty litter for $7.00 per bag. The

Problem 28 Question Help Sam's Cat Hotel operates

Problem 28 Question Help Sam's Cat Hotel operates 48 weeks per year, 6 days per week. It purchases kitty litter for $7.00 per bag. The following information is available about these bags: > Demand = 80 bags/week > Order cost = $70/order > Annual holding cost = 22 percent of cost > Desired cycle-service level = 90 percent > Lead time = 4 week(s) (24 working days) > Standard deviation of weekly demand = 8 bags > Current on-hand inventory is 200 bags, with no open orders or backorders. Suppose that Sam's Cat Hotel uses a P system. The average daily demand, d, is 13 bags (80/6), and the standard deviation of daily demand, Standard Deviation of Weekly Demand -,is 3.266 bags. Refer to the standard normal table for z-values. Days per week a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ? The time between orders, P, should be 45 days. (Enter your response rounded to the nearest whole number.) The target inventory, T, should be 930.1 bags. (Enter your response rounded to the nearest whole number.) b. How much more safety stock is needed than with a Q system? bags. (Enter your response rounded to the nearest whole number.)

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