Question
CONTEXT: CANON produces printers for sale in northern Europe in its Taiwan factory. Printers sold in different countries differ in terms of the power outlets
CONTEXT: CANON produces printers for sale in northern Europe in its Taiwan factory. Printers sold in different countries differ in terms of the power outlets as well as the language for the manuals. Currently, CANON assembles and packs printers 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 below:
QUESTION: Initially, it is assumed that demand in different countries is independent.Given that the lead time from the Taiwan factory is eight (8) weeks, how much safety inventory does CANON require in northern Europe if it targets a CSL of 95 percent? HINT: For the disaggregated option, just show sample calculations for one country (e.g., Germany), then organize the results for the remaining countries in a table or amend the table above.
Country | Mean Weekly Demand | Standard Deviation |
Germany | 3,000 | 2,000 |
Norway | 4,000 | 2,200 |
Denmark | 2,000 | 1,400 |
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