To perform a rigorous analysis, you have identified a typical product, Product A$.$

Table $1$ provides historical data that includes weekly demand for this product for the

last $12$ weeks in each of the market areas. An order $($placed by a warehouse to the

factory$)$ costs $$5,550($per order$),$ and holding inventory costs $$1\mathrm{.}25$ per unit per week.

In the current distribution system, the cost of transporting a product from the

manufacturing facility to a warehouse is given in table $2($see 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 transportation costs per unit product from each existing

regional warehouse to all other market areas, assuming this regional warehouse

becomes the central warehouse