Sam's Pet Hotel operates 48 weeks per year, 7 days per week. It purchases kitty litter...

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Sam's Pet Hotel operates 48 weeks per year, 7 days per week. It purchases kitty litter for $8.50 per bag. The following information is available about these bags: > Demand = 80 bags/week > Order cost = $75/order > Annual holding cost = 22 percent of cost > Desired cycle-service level = 98 percent > Lead time = 1 week(s) (7 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 Pet Hotel uses a P system. The average daily demand, d, is 11 bags (80/7), and the standard deviation of daily demand, Standard Deviation of Weekly Demand is 2.268 bags. Refer to the standard normal table for z-values. VDays 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 50 days. (Enter your response rounded to the nearest whole number.) The target inventory, T, should be 667 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.) Sam's Pet Hotel operates 48 weeks per year, 7 days per week. It purchases kitty litter for $8.50 per bag. The following information is available about these bags: > Demand = 80 bags/week > Order cost = $75/order > Annual holding cost = 22 percent of cost > Desired cycle-service level = 98 percent > Lead time = 1 week(s) (7 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 Pet Hotel uses a P system. The average daily demand, d, is 11 bags (80/7), and the standard deviation of daily demand, Standard Deviation of Weekly Demand is 2.268 bags. Refer to the standard normal table for z-values. VDays 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 50 days. (Enter your response rounded to the nearest whole number.) The target inventory, T, should be 667 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.)

Answer rating: 100% (QA)

Unit cost c 850 per bag Number of operating weeks 48 weeks 7 days per week working day 4... View the full answer