1. Let us return to the REl problem discussed in class. There are 5 REI stores across the US, and each store makes its own inventory decisions independently of the others. Each store orders from the same supplier in Mexico, who charges a flat shipping fee of $2200 per order to every store and a cost per unit of $250. Annual demand in each store is 3068 jackets, while weekly demand is normally distributed with a mean of 59 and standard deviation of 30 jackets. Annual holding costs are assumed to be 20% of the cost of goods. During the 2 week lead time that it takes for each store to receive its order from the supplier, each store wants to maintain a 95% SL. a. Identify the EOQ quantity, safety stock, and inventory turnover ratio (turns) at each store (10 points) b. REI is considering consolidating all 5 stores into a single location. The supplier continues to charge the same rates to the consolidated store, and the SL target remains at 95%. What inventory-related and ordering-related cost benefits does REI achieve from consolidation? How does the inventory turnover ratio change? (20 points) 2. Consider the inventory problems at Scientific Glass Inc. What cost benefits could SGI experience from reducing their target SL from 99% to 95% while simultaneously outsourcing all warehousing and distribution to Global Logistics? (20 points)