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 demandis d= 90 6 daily demand is od = 15 bags and the standard deviation of Tweek (15/6) = 6.124 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 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.Demand = 90 bags/week Order cost = $54/order Annual holding cost = 27 percent of cost Desired cycle-service

Current on-hand inventory is 320 bags, with no open orders or backorders.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations Management Processes And Supply Chains

ISBN: 9781292409863

13th Global Edition

Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman

Question Posted: