Safety Circuits Inc. stocks and sells small electronics products using an (R, S) type of control system. A manager reviews the stock monthly. The supplier delivers at their location following a lead time of 10 days. Inventory carrying charge is 0.12 $/$/year. The manager has observed that demand for the XRL line is as follows:

where σi,1 is the standard deviation of yearly demand for item i. Suppose that a TSS of $1,200 is to be allocated among the three items. Consider the following service measures:
1. Same k for the 3 items 2. Same P1 for the 3 items 3. Same TBS for the 3 items 4. Same B1 for the 3 items 5. Same B2 for the 3 items For each, determine

a. How the $1,200 is allocated among the three items?

b. ETSOPY

c. ETVSPY (expected total value short per year)
Note: Assume that forecast errors are normally distributed and the same r value is applicable to all three items. Negative safety factors are not permitted.