Part 1 Sam's Cat Hotel operates 48 weeks per year, 5 days per week. It purchases kitty litter for $6.50 per bag. The fo
Posted: Sun Jul 03, 2022 4:27 pm
Part 1
Sam's Cat Hotel operates 48 weeks peryear, 5 days per week. It purchases kitty litterfor $6.50 per bag. The following information is availableabout these bags:
≻Demand = 55 bags/week
≻Order cost = $75/order
≻Annual holding cost = 28 percent ofcost
≻Desired cycle-service level=98 percent
≻Lead time = 2week(s) (10 working days)
≻Standard deviation of weekly demand = 6bags
≻Current on-hand inventory is 275 bags, with noopen orders or backorders.
Suppose that Sam's Cat Hotel uses a P system. The averagedaily demand, d, is 11 bags (55/5),
and the standard deviation ofdaily demand, Standard Deviation of Weekly DemandDays per Week,is 2.683 bags. Refer to the standard normaltable for z-values.
Part 2
a. What P (in working days) and T should be used toapproximate the cost trade-offs of the EOQ?
The time between orders, P, should be----- days (enteryour response here days. (Enter your response rounded to thenearest whole number.)
Sam's Cat Hotel operates 48 weeks peryear, 5 days per week. It purchases kitty litterfor $6.50 per bag. The following information is availableabout these bags:
≻Demand = 55 bags/week
≻Order cost = $75/order
≻Annual holding cost = 28 percent ofcost
≻Desired cycle-service level=98 percent
≻Lead time = 2week(s) (10 working days)
≻Standard deviation of weekly demand = 6bags
≻Current on-hand inventory is 275 bags, with noopen orders or backorders.
Suppose that Sam's Cat Hotel uses a P system. The averagedaily demand, d, is 11 bags (55/5),
and the standard deviation ofdaily demand, Standard Deviation of Weekly DemandDays per Week,is 2.683 bags. Refer to the standard normaltable for z-values.
Part 2
a. What P (in working days) and T should be used toapproximate the cost trade-offs of the EOQ?
The time between orders, P, should be----- days (enteryour response here days. (Enter your response rounded to thenearest whole number.)