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1) Develop an inventory model for managing the Desk Jet printers in Europe assuming that the Vancouver plant continues to produce the six models sold in Europe.An inventory model (periodic review) for Vancouver plant was developed with a lead time of 5weeks and review period of 1 week for both shipping and air. The periodic review method ismore responsive to demand fluctuations than that of the existing method which is based onjudgement using any rule of thumb. The level of change in the new model is relatively smallwhen compared to the existing method (in case of transport using ships). The safety stock forthe new model (both air and by ship) is less than that of the inventory maintained as per thecurrent method.ShipAirMeanStdDevWeeklyMeanWeeklyStd DevSafetystock OutputlevelSafetystock OutputlevelA42.332.49.7315.5478.05136.4645.0664.53AA420.2203.996.7098.49494.581074.80285.54478.95AB15830.15624.63643.092716.9413642.9935501.547876.7815162.97AQ2301.21168.5529.59564.442834.316011.851636.392695.57AU42082204.6968.421064.925347.4611157.963087.365024.19AY306103.170.4249.80250.08672.61144.38285.2323107.822647.4654555.2213075.5223711.44There is a significant difference in the safety stock level between ship and air transportation (ifimplemented) mainly because the difference in the lead time from 5 weeks to 1 week , also thesafety stock inventory level reduced from 22647to 13075units which in turn will reducevarious expenses such as holding and transportation cost. The detailed cost analysis is done for