Using Centralized warehousing as in part (a) implies that products must be shipped over long distances. Suppose that shipping costs $.78 per unit when using one warehouse and $.63 when using 25 warehouses. Which option should the company choose, considering all relevant costs ?

Annual shipping cost for one warehouse is $__

Annual shipping cost for 25 warehouses is $__

The total of annual set up and holding and shipping costs for one warehouse is $__

The total of annual set up and holding and shipping costs for 25 warehouses is $__

The company should choose the option of __ warehouse(s)?

Suppose that your firm manufactures rubber chickens. Monthly demand for the chickens is 33,000 units. Setup cost per order is $81, and the annual holding cost percentage is 16%. The chickens cost $8 to produce and are sold for $18. a) If you have one warehouse, the economic order quantity for the chickens is units (round your response to the nearest integer). The total of the annual setup and holding costs of this quantity is $ (round your response to the nearest whole dollar). b) Suppose that you have 25 warehouses instead of one, and total demand is equally distributed among the warehouses. If setup and holding costs are the same in the smaller warehouses as they would be for the single large warehouse, the EOQ for the chickens at each of the 25 warehouses is units (round your response to the nearest integer). The total of the annual setup and holding costs at each warehouse is $ (round your response to the nearest whole dollar). The total of the company's annual setup and holding costs is $ (round your response to the nearest whole dollar)