Question: 3. (15 points) We will compare the centralized (One warehouse, serving both markets) and decentralized systems (Two warehouses, each serving one market). Consider the information

3. (15 points) We will compare the centralized (One warehouse, serving both markets) and decentralized systems (Two warehouses, each serving one market). Consider the information below for a single product firm: --97% service level (please refer to the table in Page 5 to find the z value) --$60 fixed order cost --$0.27 weekly holding cost --1 week lead time Fill in the following table: Please only show calculations for the centralized case below the table. AVG STD SSS S Average (per week) Inventory Warehouse 1 20 8 Warehouse 2 30 12 Centralized 50 16 warehouse

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