Analyze all the following inventory management approaches $($i through iv$)$ for each of the $3$

products mentioned in the case $($see Exhibit $1)$ and calculate quarterly expected profits and

determine which approach should be used for each product.

Assume that TJL facility enables a $$make$-$to$-$order$$ environment, thanks to very flexible order

timing and very short lead times they provide.

i$.$ Only the Chinese supplier, for a single order.

ii$.$ Only the TJL facility.

iii. Both suppliers.

Hint: Single order from Chinese supplier, and TJL as needed.

iv$.$ Only the Chinese supplier, but this time to implement a Periodic Review policy.

Hint: Use T $=1$ quarter, and make sure to calculate $$quarterly$$ costs, including cost of the

goods and holding cost of all associated inventory. Note that there are no $$fixed costs of

ordering$,$ and freight cost is given as a variable $($unit$)$ cost$.$

Note: Since all demand information is given as $$per quarter $(1/4$ of a year$),$ use $$quarters$$ as

your unit of time. Lead time from China is $120$ days $=4/3$ quarters.

Note: Assume no backlogs are allowed $($any unmet demand is lost forever$).$