Problem 3 FIFCTRON is a Soudi company that makes electronic equproent. The company has a single plant in AtKharjindustrial iey. FiECThoN diatibutes its products through five resionar warehouses located in Ryadh, Hafr A.Batin. Tsbuk, Jeddah, and ABha. Currenthy, ihe distritution mitem divides Saudil Arabi? into five major mankets, each of which is served by a sinde regonat warehouse ketal outlets are the typical custornets for EiECTeow and they recelve products dinetly trom the regional warnhouse located in their area. In othee words, in the current distribution system, every customer is astigned to a specific mariet and receives deliveries from a sinyle reg onat warehouse. The warehouses recelve items from the plant. TVpically, it takes about 2 weeks to satisfy an arder placed by any of the regional warehouses fo reduce contt, FLFCTRON is consideeing an alternative distribution strateby where the five regional warehouses are replaced with a single, central worehouse that will be reiponsible for all cuitomer orders. This warehouse should be one of the existing warehouse. Answer the folowing cuestion: 3. Iot's foes on a single groduct, Froduct A. Takle I prevides weeky demand data for this product in each of the mantet arear. An order (placed bya warehoute to the plant) costs SAR. S.550 (per order) and holding imventory costs sAk 1.25 per und per week, in the curfent ditribution intem, the cot of transporsing a prodact from the plant to a warehoulie is given in Table 2 lsee the column tinbouns'. Table zaso provides information about tranaportason cost per unt from each wacehouge to the steres in its marke areat isee the colamn "Outbound"? Finalh. Table 3 grovides irformation about trancoortasicn cottiper unit groduct from each existise regonat warehouse to all other market areas, arwming tha inevonal wareboure becomes the central warehouse. Table 1 Table 2 Table3 If you need to nabate the nwo intens for fiedoet A enly what wouls you wasein? Vus resone must determine which reseseal warehovie eopld fenction in the cantral war house FLECTRON is a Satadi company that makes electronic equipment. The company has a single plant is AlKhapj induntrial city, fLfCTRON ditributes its products through five regional warehounes located in Riyadh, Halr Al Batir, Tabuk, Jeddah, and Abha. Currenty, the dotribution system divides Saudi Arabia into five major markers, each of which is served by a single regional warehouse. Recail outlets are the typical customers for ELECIROW and they receive products directly from the regional warehouse located in their area. In other words, in the current detribution 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 warehcuses. To reduce costs, Llect wow 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 I prevides weekly demand data for this product in each of the market areas. An order (placed by a warehouse to the plant) costs 5AR5,550 iper order) and holding inventory costs 5AR1.25 per unit per week. In the current diatribution system, the cost of transporting a product from the plant to a wareheuse is tiven in Table 2 fsee 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 tranaportation costs per unit product fram each eaisting 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 imvolve a comparison of costs and average inventory levels for both strategies. Additionally, vou must determine which repional warehouse would function as the central warehouse