Question: Case Analysis Problem: Case 1. (Show all your works, including all computational procedures and details) Our paint store (OPS) sells 5 different paints to consumers:

Case Analysis Problem: Case 1. (Show all your

Case Analysis Problem: 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 cach 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 (I-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 10 20 15 25 30 Demand let (a) Assume that cach color paint's 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. Let denote average inventory (1) of the color paint Also I = Red + + + + be the total / of 5 color paints. Compute / for each color. =?. = ?. What should be the total / for 5 colors combined? 1=

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