Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Management

Authors: Andrew J. DuBrin

9th Edition

538478233, 2900538478235, 978-0538478236

More Books

Students also viewed these General Management questions

Question

How often do you meet with your graduate students?

Answered: 1 week ago

Question

Why is firm value maximised somewhere between 0% and 100% debt?

Answered: 1 week ago

Question

Solve each equation or inequality. |6x8-4 = 0

Answered: 1 week ago