2) (10 points) You are deciding whether to use a fixed or floating storage policy in a new

storage area where four products

-A , B, C. and D are stored. All products are stored by pallet load. After analyzing the demand pattern for each product, you determine an inventory control policy for each product.

Based on this, you compute the anticipated number of

pallets of each product that are on hand each day during each two-week period (i.e., 10-day

period). This information is shown in the table below.

the end of the total) which poth in be used in 2) (10 points) You are deciding whether to use a fixed or floating storage policy in a new storage area where four products A, B, C, and D-are stored. All products are stored by pallet load. After analyzing the demand pattern for each product, you determine an inventory control policy for each product. Based on this, you compute the anticipated number of pallets of each product that are on hand each day during each two-week period (ie., 10-day period). This information is shown in the table below. #pallets of each product on hand Period A B D 1 10 2 8 10 6 5 10 5 10. 5 10 9 5 10 2 4 2 10 a. How many total storage locations are needed if the products are stored according to a fixed storage policy? b. How many total storage locations are needed if the products are stored according to a floating storage policy? c. Rental costs are $10 per month per storage location. The cost of implementing and maintaining a system which can track floating storage locations is $100 per month. Given these costs, which storage policy, fixed or floating, is the least expensive? Show your work below. 3 4 5 6 7 8 4 2 10 8 6 4 3 2 1 10 9 8 7 6 5 1 5 4 3 2 1 5 4 3 5 the end of the total) which poth in be used in 2) (10 points) You are deciding whether to use a fixed or floating storage policy in a new storage area where four products A, B, C, and D-are stored. All products are stored by pallet load. After analyzing the demand pattern for each product, you determine an inventory control policy for each product. Based on this, you compute the anticipated number of pallets of each product that are on hand each day during each two-week period (ie., 10-day period). This information is shown in the table below. #pallets of each product on hand Period A B D 1 10 2 8 10 6 5 10 5 10. 5 10 9 5 10 2 4 2 10 a. How many total storage locations are needed if the products are stored according to a fixed storage policy? b. How many total storage locations are needed if the products are stored according to a floating storage policy? c. Rental costs are $10 per month per storage location. The cost of implementing and maintaining a system which can track floating storage locations is $100 per month. Given these costs, which storage policy, fixed or floating, is the least expensive? Show your work below. 3 4 5 6 7 8 4 2 10 8 6 4 3 2 1 10 9 8 7 6 5 1 5 4 3 2 1 5 4 3 5