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I don't know how to do it P-4) (15 pts) The KLM Company produces R product in its Ankara plant for sale in Turkey. Currently,

I don't know how to do it

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P-4) (15 pts) The KLM Company produces R product in its Ankara plant for sale in Turkey. Currently, KLM Company manufactures and packs Rs for sale in individual customers. The distribution of weekly demand in different countries is normally distributed, with means and standard deviations as shown in the following table. Customers Mean Demand Std. Dev. A 2000 100 B 6000 220 C 4000 140 D 4500 160 E 2000 100 F 6000 240 a. The demand for each customer is independent. The lead time from the Ankara factory is 4 weeks, "how much safety inventory does KLM Company require each customer " if it targets a CSL of 95 percent? (5 pts) HINT: FS (0.95) = 1.645 ; DL = DXL ; OL = VLOD; SS = F5 1(CSL)XOL b. KLM Company decides to build a central warehouse in Konya. It will ship Rs to the central warehouse. When an order is received, DC will ship the Rs to the customers. The lead time for the product is four weeks. How much saving of safety inventory can KLM Company expect as a result? (10 pts) HINT: [FS (0.95) = 1.645]; Dc = Et=1 Di ; of = Vvar(DC); ss = Fs (CSL)xOL

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