he multiechelon inventory model in Example 17.9 requires about 595 itemsof on-hand or pipeline inventory, on average, to satisfy the fill rate constraint, even though the mean total demand per week is only 450. See how thischanges as the amount of uncertainty decreases. Specifically, make thestandard deviations of demand smaller and then run RISKOptimizer (withexactly the same settings). You can make the standard deviations as small asyou like. Does the mean total system inventory get closer to 450

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)