Assume that you are a producing manager of an office chair manufacturer. Your company purchase raw material and customize office chair for the following three countries: Japan, Taiwan, and South Korea. The chairs produced for each country is customized and labeled with the trademark of the client. Thus, no cross-sale is allowed. The order quantity from each country are summarized on the table below. The unsold product will be salvaged in the end of the year.

Country	Max	Min
Japan	1000	500
Taiwan	800	300
Korea	500	300

Assume that the cost of raw material is NT$ 50, the sales price is NT$ 1,000 and the unsold finish product is salvaged with cost of NT$ 3. Please answer the following question:

What is your optimal production quantity for every country?

Assume that your company is starting a joint venture with a local retailer. The retailer estimates its annual demand to be normally distributed with mean 1,000 and standard deviation equals to 50. In addition, the transportation lead-time is two weeks. Also, assume that the retailer operates 250 days per year, 5 days per week and the cycle service level is 90%. Interest rate is 6% and ordering cost equals $50. Answer the following questions:

Under periodic review inventory system, what is the (i) review period; (ii) safety stock; (iii) target inventory level?

Under continuous review inventory system, what is the (i) safety stock; (ii) reorder point

Please construct an excel which can calculate the answers in (b). Also, please use that excel to compare the answer of safety stock for customer’s service level 95%, 90%, 85% and 80% with both periodic and continuous review system.