JJ a small chain of arts and crafts stores in the U.S. Midwest, that sells blue and green scarves in its stores. The associated demand and lead time information is provided in the table below. In an effort to reduce inventory investments, the company is considering replacing blue and green scarves by a single stock keeping unit (SKU), namely turquoise ribbons, since market research indicates that buyers of blue or green ribbons would be willing to switch to turquoise scarves, such that total demand for this product would be approximately equal to the sum of demands for blue and green ribbons. Since demands for blue and green scarves are less than perfectly positively correlated, the standard deviation of demand is estimated to be 7,500 units only.

		Blue	Green	Turquoise
Demand	D	20924	12000	33000	units/year
Std Deviation Demand	sD	6300	3300	7500	units/year
Lead time	L	0.05	0.05	0.05	years
Std Deviation Lead time	sL	0.04	0.04	0.04	years
In-stock rate	z	95	95	95

A) What is the standard deviation of lead time demand for Blue Ribbons?

B)What is the standard deviation of lead time demand for Green Ribbons?

C) What is the standard deviation of lead time demand for Turquoise Ribbons?

D) Assume the calculated safety stock for Blue was 2706 and calculated safety stock for Green was 1452. What is the percent difference of using Turquoise?

E) What is the Safety Stock for Turquoise Ribbon?

F) What is the safety stock for Blue Ribbons?

G) What is the safety Stock for Green Ribbons?