Elyssa's Elegant Eveningwear (EEE) needs to ship finished good from its manufacturing facility to its distribution warehouse.

Elyssa’s Elegant Eveningwear (EEE) needs to ship finished good from its manufacturing facility to its distribution warehouse. The daily demand from the distribution warehouse is normally distributed with mean 1200 gowns, and standard deviation 300 gowns. It costs the distribution warehouse $0.25 for hold one gown for one day. If the manufacture experiences stock out and cannot fulfill an order from the distribution warehouse, the distribution warehouse would wait, but charge a $3/gown/day penalty to the manufacturer.

EEE uses a premium parcel service for the gown delivery, which requires a 2-day transit time.

• The distribution warehouse needs to holdgowns as safety stock. (round your answer to the nearest integer) (0.5 points)

Please show your calculation below:

• The base-stock level s* =gowns.  (round your answer to the nearest integer) (0.5 point)

Please show your calculation below:    

• If there are 1800 gowns stored in the distribution warehouse, and there are 400 gowns in transit, the distribution warehouse should order gowns. (round your answer to the nearest integer) (0.5 points)

Please show your analysis below:

• If the transit time increases from 2 days to 4 days, ADDITIONAL gowns need to be held as safety stock. (round your answer to the nearest integer) (0.25 points)