$1.$ Senco Electronics Company currently operates three warehouses to store and process both online and retail orders. As the demand will continue to increase, Jack Kaminski, logistics manager of the company, is considering a more cost$-$effective way to change their current warehouse option. New plan is to reduce to a single mega warehouse to be able to consolidate the orders for both online and retail channels. The company conducted an analysis to evaluate the total cost impact of their current warehouse operations and the new warehouse option. The current level of annual demand is $100,000$ units.