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?

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?