Question 1 SMK Inc., a remote control manufacturer, currently operates one warehouse in Charlotte, NC. However, the CEO is concerned that the customer service levels at the SMK warehouse are too low, as delivery times to customers are below the industry standards. The customer service manager at SMK has suggested that more distribution centers located around the country would enable the firm to respond more quickly to customer orders. As the logistics consultants, you know that increasing the number of warehouses will also increase the company's overall inventory levels. Refer to Table 1 below. Given that there are on average 101,000 remote SKUs in inventory in the current distribution center in Charlotte, estimate the total inventory levels for each of the additional DCs around the country. If inventory is valued at $ 70 per unit and ICC are 21%, determine the cost that would accrue with each alternative. (NOTE: Round inventory units UP to the nearest whole number, and work from there to calculate inventory costs and ICC). Table 1 # DCS Units in Inventory Inventory Value Inventory Carrying Cost Lost Sales Extra Total Fill Rate Storage Cost 1 - Charlotte 101,000 70% 2 - Denver 75% 3 - Atlanta 80% 4- San Diego 85% 5- Memphis 90% 6- Dallas 95%