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A company that produces and distributes electronic equipment in the Northeast, currently partitions the region into two markets. Each market is served by a single

A company that produces and distributes electronic equipment in the Northeast, currently partitions the region into two markets. Each market is served by a single warehouse (i.e., each customer is assigned to a single market and receives deliveries from the warehouse in that region).
The following information is the historical weekly demand at each region/market for a typical product: Product X(assume 50 weeks per year). Note that the ordering cost is $300 per order, lead time is always 4 weeks, carrying cost is $30 per unit per year, the desired service level is 95%, and they are utilizing a continuous review inventory system. The company has decided to serve both markets/regions by utilizing a single centralized warehouse.
Table 1- Weekly Demand Data
Week
1
2
3
4
5
6
7
8
9
10
Market 1
75
62
70
65
58
74
53
77
70
76
Market 2
78
93
71
98
65
79
66
95
90
80
Calculate the average demand at the centralized warehouse.

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