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50 points) You are the COO of a company that produces an industrial product for the US market. You have one factory and two distribution

50 points) You are the COO of a company that produces an industrial product for the US market. You have one factory and two distribution centers (East and West). All customers are served from the distribution centers, that is, none are served directly from the factory. The average and standard deviation of daily demand for both distribution centers are given in a table below, as are the per-unit costs and time for transporting a unit from the factory to a distribution center. Demand at each distribution center is not correlated over time or with the demand at the other distribution center. You are in a competitive industry in which customers value high order fill rates. As such, you've made a decision that the distribution centers hold safety stock and must provide a 99% service level. Distribution Center Data Distribution Center (DC) Average Daily Demand Std. Deviation of Demand Per-unit Cost ($) to ship from Factory to DC Time (days) to ship from Factory to DC East 25 10 4 2 West 20 8 2 1 Component Procurement Data Component Per-unit Cost ($) Lead Time (days) A 750 60 B 950 60 C 650 40

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