David is a shoemaker and owns $4$ warehouses located at Torrance, Los Angeles, Irvine, and Riverside. In order to reduce inventories, David is considering whether he should close some warehouses to save costs. The order cost is $$60$ per order, and the inventory holding cost is $$0\mathrm{.}27$ per unit per week. You promise customers that order lead time is one week and customer service level is $95\%.$ First, he collected the information about the demand in the past $12$ weeks at these four locations.

$2$

OMG $430$ Prof. Jian$-$yu Fisher Ke

$\backslash$table$[[,$W$1,$W$2,$W$3,$W$4,$W$5,$W$6,$W$7,$W$8,$W$9,\backslash$table$[[$W$1],[0]],\backslash$table$[[$W$1],[1]],\backslash$table$[[$W$1],[2]]],[$Torrance$,50,58,76,45,34,67,88,90,100,56,40,55],[\backslash$table$[[$Los$],[$Angeles$]],34,38,45,67,90,45,22,33,45,67,89,90],[$Irvine$,120,133,156,178,130,122,155,200,120,150,122,134],[$Riverside$,15,22,33,35,40,20,22,12,15,16,15,17]]$

David is using Q$-$system to maintain the inventory levels at four warehouses.

Hints: You need to use Excel and the Risk Pooling template to answer this question.