Question: Problem 28 Question Help Sam's Cat Hotel operates 50 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 50 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 = 65 bags/week > Order cost = $50/order > Annual holding cost = 28 percent of cost > Desired cycle-service level = 99 percent > Lead time = 1 week(s) (6 working days) > Standard deviation of weekly demand = 6 bags > Current on-hand inventory is 225 bags, with no open orders or backorders. Suppose that Sam's Cat Hotel uses a P system. The average daily demand, d, is 11 bags (65/6), and the standard deviation of daily demand, Standard Deviation of Weekly Demand is 2.449 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 37 days. (Enter your response rounded to the nearest whole number.) The target inventory, T, should be 510 bags. (Enter your response rounded to the nearest whole number.) b. How much more safety stock is needed than with a Q system? 23 bags. (Enter your response rounded to the nearest whole number.) c. It is time for the periodic review. How much kitty litter should be ordered? | bags. (Enter your response as an integer.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

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...

Save -- Homework: HW-10 (Continuous Review Model, 45 pts, 3 att) der 1 Score: 0 of 8 pls 2 of 6 (6 complete) HW Score: 55 89%, 25 15 of 45 pts when 0 X Problem 14 Question Help 16 Sam's Cat Hotel...

Problem 13 Question Help 0 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 $10.50 per bag. The following...

* X Problem 14 Is Question Help Tes Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The...

M3 Assignment 3 Problem 14 A) is correct Sam's Cat Hotel operates 50 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $12.00 per bag. The...

Sam's Cat Hotel operates 50 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about...

Data Table The table below shows the total area under the normal curve for a point that is Z standard deviations to the right of the mean. Z 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3...

Sam's Cat Hotel operates 50 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 = 55 bags/week > Order cost...

Sam's Cat Hotel operates 50 weeks per year, 6 days per week. It purchases kitty litter for $6.50 per bag. The following information is available about these bags: > Demand = 65 bags/week > Order cost...

Briefly describe and discuss the differences between for-profit organizations and NPOs. Do you believe these differences justify the use of distinct accounting principles for each group? Why or why...

Gale Communications, Inc., is preparing its cash budget for 2012. Gale ended 2011 with cash of $85 million, and managers need to keep a cash balance of at least $78 million for operations....

Why is Trans North's capital structure irrelevant?

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...