A company manufactures products in its factory in Turkey for sale in Asia. Products sold in different countries differ in terms of the power outlet as well as the language of the manuals. Currently, the company assembles and packs products for sale in individual countries. The distribution of weekly demand in different countries is normally distributed with means and standard deviations as shown in the table Assume that demand in countries to be independent. Given that the lead time from the Turkey factory is (X/4) weeks, how much safety inventory does the company require in Asia if it targets a CSL level of 95 percent?X= 96 b. The company builds a distribution center in Asia. It will ship base products to this center. When an order is received, the center will assemble power supplies, add manuals, and ship the products to the appropriate country. The base products are still to be manufactured in Turkey with the same lead time. How much saving of safety inventory can the company expect as a result of this aggregation? X=96 Country а. Azerbaijan | Kazakhstan | Uzbekistan | Kyrgyzstan | Turkmenistan | Tajikistan 2,500 1,600 3,000 2,000 4,000 2,200 2,000 1,400 Mean Demand 150*X 4,000 2,400 Standard Deviation 100*X

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A company manufactures products in its factory in Turkey for sale in Asia. Products sold in different countries
differ in terms of the power outlet as well as the language of the manuals. Currently, the company assembles and
packs products for sale in individual countries. The distribution of weekly demand in different countries is normally
distributed with means and standard deviations as shown in the table
Assume that demand in countries to be independent. Given that the lead time from the Turkey factory is
(X/4) weeks, how much safety inventory does the company require in Asia if it targets a CSL level of 95
percent?X= 96
b. The company builds a distribution center in Asia. It will ship base products to this center. When an order is
received, the center will assemble power supplies, add manuals, and ship the products to the appropriate
country. The base products are still to be manufactured in Turkey with the same lead time. How much
saving of safety inventory can the company expect as a result of this aggregation? X=96
Country
а.
Azerbaijan | Kazakhstan
3,000
2,000
4,000
2,200
Uzbekistan Kyrgyzstan| Turkmenistan Tajikistan
2,000
1,400
2,500
1,600
Mean Demand
150*X
4,000
2,400
Standard Deviation
100*X
Transcribed Image Text:A company manufactures products in its factory in Turkey for sale in Asia. Products sold in different countries differ in terms of the power outlet as well as the language of the manuals. Currently, the company assembles and packs products for sale in individual countries. The distribution of weekly demand in different countries is normally distributed with means and standard deviations as shown in the table Assume that demand in countries to be independent. Given that the lead time from the Turkey factory is (X/4) weeks, how much safety inventory does the company require in Asia if it targets a CSL level of 95 percent?X= 96 b. The company builds a distribution center in Asia. It will ship base products to this center. When an order is received, the center will assemble power supplies, add manuals, and ship the products to the appropriate country. The base products are still to be manufactured in Turkey with the same lead time. How much saving of safety inventory can the company expect as a result of this aggregation? X=96 Country а. Azerbaijan | Kazakhstan 3,000 2,000 4,000 2,200 Uzbekistan Kyrgyzstan| Turkmenistan Tajikistan 2,000 1,400 2,500 1,600 Mean Demand 150*X 4,000 2,400 Standard Deviation 100*X
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