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Sam's Pet Hotel operates 48 weeks per year, 7 days per week. It purchases kitty litter for $7.00 per bag. The following information is available
Sam's Pet Hotel operates 48 weeks per year, 7 days per week. It purchases kitty litter for $7.00 per bag. The following information is available about these bags: Demand 80 bags/week > Order cost = $65/order > Annual holding cost = 22 percent of cost > Desired cycle-service level = 98 percent > Lead time = 4 week(s) (28 working days) > Standard deviation of weekly demand = 6 bags > Current on-hand inventory is 250 bags, with no open orders or backorders. Suppose that Sam's Pet Hotel uses a P system. The average daily demand, d, is 11 bags (80/7), and the standard deviation of daily demand, 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 days. (Enter your response rounded to the nearest whole number.) Standard Deviation of Weekly Demand Days per Week is 2.268 bags
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