Precious Things owns and operates 100 stores across the country. One of the products it sells is an alarm clock engraved with different words. There are three types of words: “Aggies”, “TAMU”, and “The 12th Man”. The weekly demand for the clock with each word is normally distributed with mean of 5 and standard deviation of 5 at each store. Assume demands are independent across stores and across three types. Inventory is replenished directly from vendors and the lead time is 10 weeks. Each store reviews its inventory every 26 weeks and wants 95% service level (corresponding z = 1.95).
Manager at College Station store finds that there are 25 clocks with word “Aggies” in her store from a recent inventory review. How many clocks with word “Aggies” should she order using P-model?
What is the total safety stock Precious Things holds for the clock with word “Aggies”?