Suppose for Exercise 5.24, there is a second car horn for medium-sized cars with demand that is normally distributed with a mean of 1500 and a standard deviation of 200.

All other information from Exercise 5.24 is the same. The car manufacturer is considering using only one car horn type rather than the two they carry. Answer the following:

a. Determine the (Q, R) parameters for the second horn.

b. Determine the total safety, cycle, and pipeline stock for both horns.

c. Repeat parts

(a) and

(b) for a combined horn (i.e., one that serves both small and medium cars).

Exercise 5.24:

Suppose a distributor faces an annual demand for a car horn for small cars that is normally distributed with a mean of 2300 items and a standard deviation of 300.

The cost of placing an order is $150 and the holding cost is $10/item/year. The replenishment lead time is 9 days (assume 352 days in a year).