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The manager at skyler's pet supplies decides to order catnip treats from a supplier that visits whenever the manager calls, and then makes orders. The annual demand for the cat treats is 8,000, with a daily standard deviations of 6 treats. The store is open 365 days per year. their order cost is $35, the treats are $1.25 each. and the carrying cost rate is 28% per year. The order lead time is always 5 days. The manger wants a 95% service level.
What is the target quantity or order-up-to-level? if there were 225 cat treats in inventory when the supplier visited, what would be the order size?
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