Question: Question 7 ties into question 6. Can I please receive help on this? 6. Sam's Cat Hotel operates 52 weeks per year, 6 days per

Question 7 ties into question 6. Can I please receive help on this?
6. Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system (i.e. Q system). It purchases kitty litter for $ 9 per bag. The following information is available about these bags. Demand = 87 bags/ week Order cost = $ 50/ order Annual holding cost = 30 percent of cogs Desired cycle service level = 80 percent Lead time = 3 weeks Standard deviation of weekly demand = 13 bags Current on-hand inventory is 320 bags, with no open orders or backorders. a. What is the EOQ? What would be the average time between orders (in weeks)? b. What should R (i.e. reorder point) be? C. An inventory withdrawal of 10 bags was just made. Is it time to reorder? d. The store currently uses a lot size of 600 bags (i. e., Q = 600). What is the annual holding cost of this current policy? Annual ordering cost? Without considering the EOQ, how can you condude from these two calculations that the current lot size is too large? e. What would be the annual cost saved by shifting from the 600- bag lot size to the EOQ? 7. Suppose that Sam's Cat Hotel in the problem above uses a P system instead of a Q system. The average daily demand is = 87/6 = 14.5 bags. and the standard deviation of daily demand is od Oweek V6 = 13 = 5.307 bags V6 a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ? b. How much more safety stock is needed with a P system than that with a Q system? c. It is time for the periodic review. How much kitty litter should be orderedStep by Step Solution
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