Q 1. What is the safety stock to be maintained by the sales and distribution division for a service level of 95 percent(Zvalue = 1.645)? (Assume the standard deviation of the monthly demand = 264, per month = 30 days)

Note: Please use exhibit 1 to calculate the demand.

EXHIBIT 1: DEMAND FOR SEVEN STAR (NUMBER OF CARTONS SOLD) YEAR 2006 2007 2008 2009 2010 JAN 742 741 896 951 1030 FEB 697 700 793 861 1032 MAR 776 774 885 938 1126 APR 898 932 1055 1109 1285 MAY 1030 1099 1204 1274 1468 JUN 1107 1223 1326 1422 1637 JUL 1165 1290 1303 1486 1611 AUG 1216 1349 1436 1555 1608 SEP 1208 1341 1473 1604 1528 OCT 1131 1296 1453 1600 1420 NOV 971 1066 1170 1403 1119 DEC 783 901 1023 1209 1013