Suppose that Sam’s Cat Hotel in Problem 10 uses a P system instead of a Q system. The average daily demand is d = 90/6 = 15 bags. and the standard deviation of daily demand is σd = σweek / √6 = (15 / √6) = 6.124 bags.
a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ?
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?
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Suppose that Sam’s Cat Hotel in Problem 10 uses a P system instead of a Q system. The average daily...
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