1. HP produces printers for sale in Europe in its Vancouver, Canada factory. Printers sold in different countries differin terms of the power outlet as well as the language manuals. Currently HP assembles and packs printers for sale inindividual countries. The distribution of weekly demand in different countries is normally distributed with mean anstandard deviation as shown in the Table below. Assume demand in different countries to be independent. Giventhat the lead time from the Vancouver factory is six weeks, how much total safety inventory does HP require inEurope if it targets a cycle service level of 95 percent?CountryFrance/BeneluxUK/IrelandGermanyItaly/Spain/PortugalDemandForecast3000400040002500StandardDeviation200022001250800EAMO2ad of el how Autarasesit themsiWhat if HP decides to build a central distribution center (DC) in Europe. It will ship base printers (without powersupply) to the new DC. When an order is received, the DC will assemble power supplies, add manuals, and ship theprinters to the appropriate country. The base printers are still to be manufactured in Canada with a lead time of sixweeks. How much saving of safety inventory can HP expect as a result?

Given: Lead Time = 6 weeksProbability of service level = 95%Then the z value corresponding to 0.95…

Answered: HP produces printers for sale in Europe…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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