An importer of television sets from the Far East distributes them throughout the European Union from four warehouses. Shipments are received monthly, and this month's shipment is 120,000 sets. Due to the long lead time, demand and supply for the sets are hard to match. Therefore, an allocation to the warehouses is based on a monthly demand forecast and the service level for each warehouse. The inventory records and forecast for the coming month show the following situation:

a Projected to the time of a stock replenishment based on the current sales rate.
b A standard deviation. Forecast errors are normally distributed.
c Probability of being in stock during the month.
If transportation to the warehouses takes one week and import handling requires one week after a shipment arrives, how should the allocation of the sets be made to the warehouses?

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Quantity on Demand forecast, Forecast erro, Service level 90% 85 Warehouse hand, sets sets 10,000 15,000 35,000 25,000 sets 1,000 1,200 2,000 3,000 700 2,500 1,800 92