$\backslash$table$[[$Year$,$Month,Sales$],[$Year $1,$January,$103],[$February$,103],[$March$,115],[$April$,76],[$May$,85],[$June$,105],[$July$,84],[$August$,132],[$September$,99],[$October$,83],[$November$,94],[$December$,83],[$Year $2,$January,$88],[$February$,73],[$March$,79],[$April$,84],[$May$,74],[$June$,77],[$July$,82],[$August$,72],[$September$,81],[$October$,110],[$November$,49],[$December$,106],[$Year $3,$January,$84],[$February$,137],[$March$,93],[$April$,109],[$May$,119],[$June$,128],[$July$,79],[$August$,127],[$September$,125],[$October$,96]]$

Calculate the mean and standard deviation for monthly Teddy Bear demand.

$\backslash$table$[[,96\mathrm{.}95833333],[,],[,19\mathrm{.}16589672],[,]]$

The store owner has just learned about the base stock policy, and would like to develop an appropriate base stock level for teddy bears. They place an order with their supplier in Mexico every $2$ months, and the delivery leadtime is $1$ month. They want to select the base stock level so that there is no more than a $\mathrm{.}05$ probabiity of a stockout.

What is the expected on$-$order inventory for teddy bears? $$

Calculate the mean of the $p+L-$month demand distribution. $$

Calculate the standard deviation of the $P+L-$month distribution. $$

Calculate the appropriate base stock level if $\frac{K}{A}BS$ is to meet their stockout $$ probability requirement.

For each of the following situations, how would your base stock level for teddy bears change?

a$.$ Mean demand increases, standard deviation decreases $$

b$.$ Mean demand increases, standard deviation increases $$