" Iable 1 : Estimation of Demand Parameters and Inventory Position* Jurong West\\ \\Orchard| Harbour Front* Hi 5.00 IT ; 201 201 101 Inventory 500 5010 " The demands across different locations are assumed to be independent . "The management team decides to procure in total 1.300 products from the manufacturer and put 3010 , 500 and God units at Jurong West , Orchard and Harbour Front respectively ( see last. now in Table ! ) . " That is , the inventory at a particular location is matched with the mean demand ( before truncation ) . No inventory can be replenished from the manufacturer* during the selling season and unsold products are worthless after the selling season . ( a ) Compute the total expected profit aggregated over the three locations ( for AMPL users , the model of process flexibility example discussed in class can be used to compute this with minor modification )* ( b) What is the total expected profit if there is no demand uncertainty at all ( i.e., 1: = (1 ) ?! ( c )" To deal with the demand uncertainty , the management team is considering cumplaying a logistic service* company to help transship its products from one store to another . For example , after the selling season begins , the demand is realized to be 250 , 5 50 and 150 units at Jurong West , Orchard and Harbour Front * respectively . In this case , Orchard is running out of inventory but both Jurong West and Harbour Front. have some leftover . ' The logistic company can then transship cither 50 units of leftover at Jurong West . or Harbour Front to satisfy the remaining demand at Orchard . "The logistic company charges a fixed transaction cost of Suzan ( which is incurred even if nothing is shipped! ) and a unit transshipment cast . depending on the origin and destination summarized in the table below . ' That is , if SO units of product . were to be shipped from Harbour Front to Orchard , then the total cost to the retailer is $ $2010 + 7 x 50 . " Table 2:"Transshipment Cast ( S$ / unit. ) Jurong West| Orchard| Harbour Front* Jurong West 2 2 U Orchard 22 7 Harbour Front* 19 7 Should the retailer adopt the service provided by the Logistic company ( ill simulation , you should check* the robustness of your answer by looking at larger sample size and different random seeds ) ?"