Question: Sam's Cat Hotel operates 50 weeks per year, 7 days per week. It purchases kitty litter for $6.00 per bag. The following information is available

Sam's Cat Hotel operates 50 weeks per year, 7 days per week. It purchases kitty litter for $6.00 per bag. The following information is available about these bags: follows

Demand = 65 bags/week follows

Order cost = $ 50/order

Annual holding cost = 30 percent of cost

Desired cycle-service level equals = 92 percent

Lead time = 1week(s) ( 7 working days)

Standard deviation of weekly demand =4 bags

Current on-hand inventory is 250 bags, with no open orders or backorders.

Suppose that Sam's Cat Hotel uses a P system. The average daily demand, d overbar d, is 9 bags ( 65/ 7), and the standard deviation of daily demand, is 1.512 bags. Refer to the 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? The time between orders, P, should be 46 days

The target inventory, T, should be 502 bags

b. How much more safety stock is needed than with a Q system? 10 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? 252 bags.

please help me to understand this answers.

thanks in advance

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