All standard deviation must add 60

replace the given standard deviation with these values , CSL=93%

2060

2260

1460

1660

860

2460

Q2. Epson produces printers in its Taiwan factory for sale in Europe. Printers sold in different countries differ in terms of the power outlet as well as the language of the manuals. Currently, Epson assembles and packs printers for sale in individual countries. The distribution of weekly demand in different countries is normally distributed, with means and standard deviations as shown in Table below. (add +300 f to ALL standard deviations on the table) Assume demand in different countries to be independent. Given that the lead time from the Taiwan factory is eight weeks, how much safety inventory does Epson require in Europe if it targets a CSL of 95-10f percent? Epson decides to build a central DC in Europe. It will ship base printers (without power supply) to the DC. When an order is received, the DC will assemble power supplies, add manuals, and ship the printers to the appropriate country. The base printers are still to be manufactured in Taiwan with a lead time of eight weeks. How much saving of safety inventory can Epson expect as a result? Assume that Each printer costs Epson $200, and the holding cost is 25 percent. What saving in holding cost can Epson expect as a result of building the European DC? If final assembly in the European DC adds $5 to the production cost of each printer, would you recommend the move? Assume that demand in different countries is not independent and demand in any pair of countries is correlated with a correlation coefficient of =