In an effort to the reduce budget in the Navy Southwest Region, Naval Facilities Engineering

Question: In an effort to the reduce budget in the Navy Southwest Region, Naval Facilities Engineering Command (NAVFAC) proposed to pool certain inventories among Naval bases that are located within short distance. NAVBASEs Coronado, Point Loma and San Diego were considered prime candidate locations for the inventory improvement initiative. They identified a type ofSee the answerSee the answerSee the answer done loadingIn an effort to the reduce budget in the Navy Southwest Region, Naval Facilities Engineering Command (NAVFAC) proposed to pool certain inventories among Naval bases that are located within short distance. NAVBASEs Coronado, Point Loma and San Diego were considered prime candidate locations for the inventory improvement initiative. They identified a type of valve for which the lead time demand has the following distributions:
mean std dev Coronado 32 10 San Diego 18 6 Point Loma 15 5.8
Question:
The demand for this valve in the three locations is uncorrelated. Considering a safety factor z = 1.9, what should be the safety stock of the combined inventory?
Variance of combined leadtime demand = 10^2 6^2 5…View the full answer