?Sam’s Cat Hotel operates 49 weeks per? year, 5 days per week.It purchases kitty litter for $ 6.50per bag. The followinginformation is available about these? bags:
Demand= 75 bags/week
Order cost? = ?$65?/order
Annual holding cost? = 25 percent of cost
Desired cycle-service level=92 percent
Lead time? = 1 ?week(s) ?(5 working? days)
Standard deviation of weekly demand? = 10 bags
Current on-hand inventory is 250 ?bags, with no open orders orbackorders.
Suppose that? Sam’s Cat Hotel uses a P system. The averagedaily? demand, d, is (75/5), and the standard deviation of dailydemand is 4,472 bags.
a. What P? (in working? days) and T should be used toapproximate the
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