Sam’s Cat Hotel operates 51 weeks per year, 5 days per week. It purchases kitty litter for $6.00 per bag. The following information is available about these bags: > Demand 70 bags/week Order cost $50/order Annual holding cost- 28 percent of cost > Desired cycle-service level 99 percent > Lead time 4 week(s) (20 working days) >Standard deviation of weekly demand9 bags Current on-hand inventory is 275 bags, with no open orders or backorders. Standard Deviation of Weokly Demand Days per Week Suppose that Sam’s Cat Hotel uses a P system. The average daily demand, d, is 14 bags (70/5),
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