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Aggie Gifts' demand for the pen sets was normally distributed with a mean of 2 0 0 sets / week and a standard deviation of
Aggie Gifts' demand for the pen sets was normally distributed with a mean of setsweek and a standard deviation of setsweek They were open fifty weeks each year. Monica had established that the average annual cost of carrying inventory amounted to percent of the value of inventory. Aggie Gifts used a reorder point system to manage all of its inventory items. Given the demanding nature of its customers, it maintained a percent Cycle Service Level. Being her first assignment, Monica felt the pressure to make recommendations that would help the company and demonstrate that she understood the business.
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