You can reference Supply Chain Management Strategy, Planning, and Operation Sixth Edition, Sunil Chopra

I can upload the case If needed.

What is the total annual inventory and transportation costs of the current distribution system?

What are the savings that would result from following the task force recommendation and setting up an NDC? Assume demand across all regions are independent.

If the demand across regions is positively correlated, how do you expect your savings to change? What about the negatively correlated scenario? (No calculation is needed, please just explain and justify your expectations.)

Qualitatively suggest other options that Gary Fisher might consider. (No calculation is needed, please just explain and justify your recommendations)

Case Study Data: Holding Cost =$0.15 per unit per day ruck Load (TL) cost from plants to DCs=$0.09 per unit ess than Truck Load (LTL) cost from DCs to customers = \$0.1 per unit ruck Load (TL) cost from plants to central warehouse =$0.05 per unit ess than Truck Load (LTL) cost from central warehouse to customers =$0.24 per unit Reorder interval =6 days ead time =5 days Dycle service level =0.95 Distribution of Daily Demand at ALKO