1. First consider the decentralized analysis. Estimate the optimal decisions for a (Q,R) inventory policy for...

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1. First consider the decentralized analysis. Estimate the optimal decisions for a (Q,R) inventory policy for each of the four SKU types detailed in the case (page 7) for each proposed DC. The data is reproduced here for ease of reference: Soft Cover I Soft Cover II HardCover I HardCover II Number of Titles 50,000 70,000 10,000 20,000 Unit Cost $2.00 $2.50 $10.00 $10.00 Lead Time 2 3 3 2 Mean Demand 25 50 100 10 Std Dev 5 50 20 12 Fed Ex Charges $6.00 $6.00 $11.00 $11.00 The demand at each DC distributed according to the above table; e.g. each of the six DCs sees a mean demand of 25 units for each title of SKU type SoftCover I. Calculate the optimal strategy (Q, R) for each decentralized DC. Estimate the annual inventory holding and ordering costs across all DC's for managing the inventory of SKU type SoftCover I. 1. First consider the decentralized analysis. Estimate the optimal decisions for a (Q,R) inventory policy for each of the four SKU types detailed in the case (page 7) for each proposed DC. The data is reproduced here for ease of reference: Soft Cover I Soft Cover II HardCover I HardCover II Number of Titles 50,000 70,000 10,000 20,000 Unit Cost $2.00 $2.50 $10.00 $10.00 Lead Time 2 3 3 2 Mean Demand 25 50 100 10 Std Dev 5 50 20 12 Fed Ex Charges $6.00 $6.00 $11.00 $11.00 The demand at each DC distributed according to the above table; e.g. each of the six DCs sees a mean demand of 25 units for each title of SKU type SoftCover I. Calculate the optimal strategy (Q, R) for each decentralized DC. Estimate the annual inventory holding and ordering costs across all DC's for managing the inventory of SKU type SoftCover I.