Question
PH produces many electronics products for the USA, Europe, and the UK. The plugs required for each of these geographical areas are different, so originally
PH produces many electronics products for the USA, Europe, and the UK. The plugs required for each of these geographical areas are different, so originally PH had produced three different versions of each product. Recently, they decided to create one version, and then ship these with three different plugs (i.e., of which two are redundant for the customer).
The demands for a particular item for each market are normally distributed with the following parameters per month: USA average of 10,000 with a standard deviation of 3,000, Europe average of 12,000 with a standard deviation of 3,000, and the UK average of 8,000 with a standard deviation of 3,000. If PH wants a 90% service level, then how much should their safety stock be according to the new system with one version? Assume that the delivery takes 1 month.
Round your answer to an integer number of units, but do not round your intermediate answers.
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