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ighVal weekly demand: mu _ H = 3 , sigma _ H = 6 , weight = H 0 . 2 lbs ,

ighVal weekly demand: \mu _H=3,\sigma _H=6,weight =H 0.2 lbs,cost = $250
LowVal weekly demand: \mu _L=25,\sigma _L=6,weight =0.05 lbs,cost = $35
CSL =0.98, holding cost =20%, L =1 week, T =3 weeks
Suppose you have 50 territories which represent each of the states in the country.
UPS lead time =1 week, $0.7+0.25x
Calculate:
HighVal Inverntory cost
LowVal Inverntory cost
Annual Inventory Holding Cost
Transportation Cost
Total Cost (Total Inventory & Total Transportation)

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