Consider the series system below. As we discussed the Walmart examples, stage 1 is a Walmart distribution center, which serves demands at Stage 2 and 3. Stage 2 and 3 are Walmart local supermarkets, which supports demands at Stage 4, 5 and 6, 7, respectively. Stages 4, 5, 6, and 7 are Walmart neighborhood stores, which you can apply EOQ inventory management policy.

A) In this setting, how many Echelons will be needed if you want to apply series system approach?

B) Please also describe composition of stages in each Echelon.

C) Pick the largest echelon from your answer B). Please draw the inventory pattern over time in stages and in the largest echelon. You may take arbitrary value.

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