Case 1. (Show all your works, including all computational procedures and details)

Our paint store (OPS) sells 5 different paints to consumers: Red, Yellow, Green, Brown, and Blue. Demand of each color paint is normally distributed with monthly mean (gallons) and standard deviation summarized in Table 1. Annual holding cost rate is 25%. Each order incurs an ordering setup (fix) cost of $1,000, and lead time is 2 months. Our paint store (OPS) wants the probability of stocking out (1-SL) to be no more than 5% (use z=1.65).

Table 1: Demand (Gallon/Month)

Color	Red	Yellow	Green	Brown	Blue
Mean Demand	20	40	32	44	50
Standard Deviation of Demand	10	20	15	25	30

Assume that each color paints inventory is managed independently (each color paint determines its order quantity and safety stock individually). Cost per gallon of paint is $20 regardless of color.

Red = reimc+ $- (a.2) Let Is denote safety stock (SS) of the color paint j Also let Bon + 1 Green + 13 be total the SS of 5 color paints. Compute SS for each color. 19an = ?, INOW = ?, 150 = ?, 13 * ?, 1 = ? What should be the total SS for 5 colors combined? Is = ? BE Red = 3