Question: 3 . Consider the example covered during Class session 3 on Risk Pooling Across Locations, and answer the following questions: a ) What is the

3. Consider the example covered during Class session 3 on Risk Pooling Across Locations, and answer the following questions:
a) What is the average inventory of product B in NJ and MA?(15 points)
b) Assuming that the demand for product B across the MA and NJ locations are independent. Now if we centralize the warehouses for product B, what is the average inventory of product B at the centralized warehouse? (15 points)
c) How much inventory reduction we get by having a centralized warehouse for product B?(5 points)

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