Suppose that Sam's Pet Hotel in Problem 13 uses a P system instead of a Q system.
Question:
Suppose that Sam's Pet Hotel in Problem 13 uses a P system instead of a Q system. The average daily demand
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 than with a Q system?
c. It is time for the periodic review. How much kitty litter should be ordered?
Data from problem 13
Sam's Pet Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags.
Current on-hand inventory is 320 bags, with no open orders or backorders.
Step by Step Answer:
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman