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Please read the Managing Inventories at ALKO Inc. Case study on page 3 5 0 - 3 5 2 of your course textbook Supply Chain

Please read the Managing Inventories at ALKO Inc. Case study on page 350-352 of your course textbook Supply Chain Management, Strategy, Planning, and Operation and then answer the following questions (please feel free to use the Excel spreadsheet available to you as part of this homework assignment)1. What is the total annual inventory and transportation costs of the current distribution system? (35 points)2. What are the savings that would result from following the task force recommendation and setting up an NDC? Assume demand across all regions are independent. (35 points)3. If the demand across regions is positively correlated, how do you expect your savings to change? What about the negatively correlated scenario? (No calculation is needed, please just explain and justify your expectations.)(15 points)4. Qualitatively suggest other options that Gary Fisher might consider. (No calculation is needed, please just explain and justify your recommendations)(15 points)

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