Question: Time between orders is 41. a. The target inventory, T, should be _____ bags? Sam's Cat Hotel operates 51 weeks per year, 6 days per
Time between orders is 41.
a. The target inventory, T, should be _____ bags?
Sam's Cat Hotel operates 51 weeks per year, 6 days per week. It purchases kitty litter for $7.50 per bag. The following information is available about these bags: > Demand = 65 bags/week > Order cost = $50/order > Annual holding cost = 22 percent of cost > Desired cycle-service level = 92 percent > Lead time = 1 week(s) (6 working days) > Standard deviation of weekly demand = 6 bags > Current on-hand inventory is 275 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, is 2.449 bags. Refer to the standard normal table for z-values. Standard Deviation of Weekly Demand Days per WeekStep by Step Solution
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