Scenario - SoxyBack, a manufacturer of fancy men's socks worn by fashionable gentlemen everywhere, is located in Oshkosh, Wisconsin. The socks are sold directly to fashion-conscious men all over North America. SoxyBack currently divides the United States into ten territories, each with its own sales force. All product inventories are maintained locally in each territory and replenished from Oshkosh every five weeks using UPS. The average replenishment lead time using UPS is one week. UPS charges at a rate of $0.75 0.33x where x is the quantity shipped in pounds. The products sold fall into two categories-Dandy and Popinjay. Dandy products weigh 0.2 pounds and cost $350 each. Popinjay products weigh 0.10 pounds and cost $35 each. Weekly demand for Dandy products in each territory is normally distributed, with a mean of mH = 3 and a standard deviation of sH = 6. Weekly demand for Popinjay products in each territory is normally distributed, with a mean of mL = 25 and a standard deviation of sL = 6. SoxyBack maintains sufficient safety inventories in each territory to provide a CSL of 0.975 for each product. Annual holding cost at SoxyBack is 30 percent. In addition to the current approach