Question
Company X is not doing well, as sofa business is suffering from the latest news of harmfulness of sitting too much. Company has decided to
Company X is not doing well, as sofa business is suffering from the latest news of harmfulness of sitting too much. Company has decided to expand her business, and uses the backroom of her sofa store to start a cat hotel, Company Hotel Y. Company needs to buy tons of cat litter, which costs $14 per bag, and estimate need to be 50 bags per week on average. Ordering costs are $77 per order, and inventory carrying costs are 10% of the purchase price. Current delivery time of the cat litter is three weeks. Hotel is open for 52 weeks a year. Calculate optimal lot size and period order qty.
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