First image is an example on how to do this exercise. Table one is a reference I need help to find the target inventory, T Sam's Cat Hotel operates 52 weeks per year, 6 days per week. It purchases kitty litter for $8.00 per bag. The following information is available about these bags: ≻Demand = 55 bags/week ≻Order cost = $70/order ≻Annual holding cost = 22 percent of cost ≻Desired cycle-service level= 99 percent ≻Lead time = 4 week(s) (24 working days) ≻Standard deviation of weekly demand = 4 bags ≻Current on-hand inventory is 250 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 (55/6), and the standard deviation of daily demand, Standard Deviation of Weekly DemandDays per Week/square root of Days per Week, is 1.633 bags. Refer to the standard normal table for z-values. a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ? The time between orders, P, should be 5252 days. (Enter your response rounded to the nearest whole number.) The target inventory, T, should be enter your response here bags. (Enter your response rounded to the nearest whole number.)
First image is an example on how to do this exercise. Table one is a reference I need help to find the target inventory, T Sam's Cat Hotel operates 52 weeks per year, 6 days per week. It purchases kitty litter for $8.00 per bag. The following information is available about these bags: ≻Demand = 55 bags/week ≻Order cost = $70/order ≻Annual holding cost = 22 percent of cost ≻Desired cycle-service level= 99 percent ≻Lead time = 4 week(s) (24 working days) ≻Standard deviation of weekly demand = 4 bags ≻Current on-hand inventory is 250 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 (55/6), and the standard deviation of daily demand, Standard Deviation of Weekly DemandDays per Week/square root of Days per Week, is 1.633 bags. Refer to the standard normal table for z-values. a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ? The time between orders, P, should be 5252 days. (Enter your response rounded to the nearest whole number.) The target inventory, T, should be enter your response here bags. (Enter your response rounded to the nearest whole number.)
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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First image is an example on how to do this exercise.
Table one is a reference
I need help to find the target inventory, T
Sam's Cat Hotel operates 52 weeks per year, 6 days per week. It purchases kitty litter for $8.00 per bag. The following information is available about these bags:
≻Demand = 55 bags/week
≻Order cost = $70/order
≻Annual holding cost = 22 percent of cost
≻Desired cycle-service level= 99 percent
≻Lead time = 4 week(s) (24 working days)
≻Standard deviation of weekly demand = 4 bags
≻Current on-hand inventory is 250 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 (55/6), and the standard deviation of daily demand,
Standard Deviation of Weekly DemandDays per Week/square root of Days per Week, is 1.633 bags. Refer to the standard normal table
for z-values.
a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ?
The time between orders, P, should be 5252 days. (Enter your response rounded to the nearest whole number.)
The target inventory, T, should be enter your response here
bags. (Enter your response rounded to the nearest whole number.)
bags. (Enter your response rounded to the nearest whole number.)
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