Problem 4 for reference to question 5. Mabt, the retailer in Problem 2, has 10 stores in Chicago area. One of their product is Oven-SX, which is a gas oven that is ordered from a manufacturer in Los Angeles. Each store faces similar demand and has been ordering the oven according to a (Q, R) policy to achieve cycle-service level of 95 percent. Due to low demand in each store, Mabt is planning to hold inventory of the oven only in 1 of the 10 storesthe store in downtown. The store in downtown is larger than other stores and can hold more inventory. It is also close to other nine stores. The idea is to keep only one oven in the other nine stores for display. When a customer orders the oven, the oven will be shipped from the store in downtown. To keep the availability the same, the plan is to keep the cycle-service level for the oven in downtown store at 95 percent.

5- Before implementing their plan for Oven-SX, one of the Mabt managers in Problem 4 recommends implementing the plan for another oven, that is, Oven-BT, which has lower sales in the 10 stores and is ordered from a manufacturer in Atlanta. All stores purchase Oven-SX at price $800 with order lead time of 3 weeks. Their order setup cost is $1200. The weekly demand for the oven at each of the 10 stores is Normally distributed with mean 8 and standard deviation 2. On the other hand, all stores purchase Oven-BT at price $1400 with order lead time of 1 week. Their order setup cost is $850. The weekly demand for the oven at each of the 10 stores is Normally distributed with mean 3 and standard deviation 1. Stores have inventory carrying rate of 25 percent and their demands are independent of each other. Which one of the two ovens would you recommend to be kept in the store in downtown? Assume 52 weeks in a year.