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ELECTRON is a Saudi company that makes electronic equipment. The company has a single plant in AlKharj industrial city. ELECTRON distributes its products through five

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ELECTRON is a Saudi company that makes electronic equipment. The company has a single plant in AlKharj industrial city. ELECTRON distributes its products through five regional warehouses located in Riyadh, Hafr Al-Batin, Tabuk, Jeddah, and Abha. Currently, the distribution system divides Saudi Arabia into five major markets, each of which is served by a single regionai warehouse. Retail outlets are the typical customers for ELECTRON and they receive products directly from the regional warehouse located in their area. In other words, in the current distribution system, every customer is assigned to a specific market and receives deliveries from a single regional warehouse. The warehouses receive items from the plant. Typically, it takes about 2 weeks to satisfy an order placed by any of the regional warehouses. To reduce costs, ELECTRON is considering an alternative distribution strategy where the five regional warehouses are replaced with a single, central warehouse that will be responsible for all customer orders. This warehouse should be one of the existing warehouses. Answer the following question: a. Let's focus on a single product, Product A. Table 1 provides weekly demand data for this product in each of the market areas. An order (placed by a warehouse to the plant) costs SAR 5,550 (per order) and holding inventory costs SAR 1.25 per unit per week. In the current distribution system, the cost of transporting a product from the plant to a warehouse is given in Table 2 (see the column "inbound"). Table 2 also provides information about transportation cost per unit from each warehouse to the stores in its market area (see the column "Outbound"). Finally, Table 3 provides information about transportation costs per unit product from each existing regional warehouse to all other market areas, assuming this regional warehouse becomes the central warehouse. Table 1 Table 2 Table 3 If you need to evaluate the two systems for Product A only, what would you suggest? Your response should involve a comparison of costs and average inventory levels for both strategies. Additionally, you must determine which regional warehouse would function as the central warehouse

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