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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 200 sets/week and a standard deviation of 25 sets/week. They were open fifty weeks each year. Monica had established that the average annual cost of carrying inventory amounted to 18 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 96 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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