IV. Alpha-Med Hospital Group (35 points) Alpha-Med Hospital Group operates three hospitals in the RDU area: one each in Durham, Chapel Hill, and in Raleigh, respectively. One of Alpha-Med's staple medical- surgical safety kits, PPE-Sure, is sourced from a distributor in Virginia with an order lead-time of 2 weeks and is delivered directly to each hospital's inventory stores. Alpha- Med's had previously aimed for reduced logistics cost footprint and hence the distributor delivered PPE-Sure directly to each hospital at no additional cost, but with the condition that the PPE-Sure kits will only be delivered in pallets of 400 kits. Weekly demand (assume 52 weeks to a year) for PPE-Sure at each of the hospitals is independent but identically distributed with a mean of 150 kits and a standard deviation of 35 kits per hospital. Each hospital holds inventory of PPE-Sure to maintain 95% local service level. The annual cost of holding inventory for PPE-Sure is 25% of the product cost, which is $200 per kit. There is no fixed cost to Alpha-Med associated with placing orders for PPE- Sure. d) (10 points) What would be the total cost to Alpha-Med of maintaining this new centralized CH-depot system for PPE-Sure, excluding the product cost itself (inventory holding cost and cost to transport from CH warehouse to Raleigh and Durham hospitals)? $'s/year Total Cost of centralized CH-depot inventory system: