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Sam's Cat Hotel operates 48 weeks per year, 5 days per week. It purchases kitty litter for $6.00 per bag. The following information is
Sam's Cat Hotel operates 48 weeks per year, 5 days per week. It purchases kitty litter for $6.00 per bag. The following information is available about these bags: >Demand 75 bags/week >Order cost = $50/order > Annual holding cost = 22 percent of cost >Desired cycle-service level 98 percent > Lead time = 4 week(s) (20 working days) >Standard deviation of weekly demand = 10 bags > Current on-hand inventory is 200 bags, with no open orders or backorders. Suppose that Sam's Cat Hotel uses a P system. The average daily demand, d, is 15 bags (75/5), and the standard deviation of daily demand, 4.472 bags. Refer to the standard normal table for z-values. 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 The target inventory. T, should be days. (Enter your response rounded to the nearest whole number.) bags. (Enter your response rounded to the nearest whole number.) bags. (Enter your response rounded to the nearest whole number.) 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? bags. (Enter your response as an integer.) Standard Deviation of Weekly Demand Days per Week is
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