Sam’s Cat Hotel operates 49 weeks per year, 7 days per week. It purchases kitty litter for $7.50 per bag. The following information is available about these bags Demand 60 bags/week >Order cost $70/order >Annual holding cost 22 percent of cost Desired cycle-service level- 96 percent Lead time -1 week(s) (7 working days) > Standard deviation of weekly demand = 4 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 9 bags (60/7), and the standard deviation of daily demand, the
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