1- What is the annual inventory and distribution cost of the current distribution system?

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I'm trying to make this case but I don't really know the formulas to use. Can you help me to develop this case with each step and formula? The case ask the following questions:

CASE STUDY Managing Inventories at ALKO Inc. ALKO began in 1943 in a garage w John Williams at his Cleveland home. John had always top. Gary Fisher was hired to reorganize and restric. ture the company orkshop set up by When Gary arrived in 2009, he found a company enjoyed tinkering, and in February 1948 he obtained a patent for one of his designs for lighting fixtures. He decided to produce it in his workshop and tried market- ing it in the Cleveland area. The product sold well, and by 1957 ALKO had grown to a $3 million company. Its lighting fixtures were well known for their outstanding quality. By then, it sold five products. teetering on the edge. He spent his first few months trying to understand the company business and the way it was structured. Gary realized that the key was in the operating performance. Although the company had always been outstanding at developing and pro- ducing new products, it had historically ignored is distribution system. The belief within the company In 1963, John took the company public. Since then, ALKO had been very successful, and the com- was that once one makes a good product, the rest takes pany had started distributing its products nationwide. care of itself. Gary set up a task force to review te As competition intensified in the 1980s, ALKO i duced many new ny's profitability, however, began to worsen despite the fact that ALKO had taken great care to ensure that product quality did not suffer. The problem was that Current Distribution System margins ha ntro- company's current distribution system and come up lighting fixture designs. The compa- with recommendations. d begun to shrink as competition in the mar- The task force noted that ALKO had 100 p products in it ket et intensified. At this point, the board decided that a 2009 line. All production occurred a complete reorganization was needed, starting at the lo cated in the Cleveland area. For sales purpo