Problem $2-4($Static$)$

As the operations manager for Valley Kayaks $($as described in the previous problem$),$ you find yourself faced with an interesting situation. Marketing has informed you that they have lost a number of sales because of a lack of inventory. Kayaks, being seasonal in nature, have to be in stock at your dealers if they are to be sold $($customers are not willing to wait$).$ The director of marketing proposes that you increase inventories by $25$ percent $($a major investment to you$).$ She has also given the information in the following table. Use Figure $2\mathrm{.}3.$