Consider a manufacturing process for an electronic appliance with a lead time of L $=9$ weeks. The process produces three product variants, customized for the electrical codes for different regions: North America; Europe; and Asia. Except for the customization of the electronics, the product is the same for all regions. Within the manufacturing process, the customization currently occurs at the start of production; the customization decision is not reversible, so once a unit is started into production, it is destined for one of the three regions.

Each product is made to stock, and the inventory is controlled with a periodic review, base stock policy.

The review period is r $=1$ week, demand is assumed to be normally distributed, and the safety factor is z $=2.$ The demand parameters are given in the following table.