A large distributor has 4 retail outlets. Currently each outlet manages its ordering independently. Demand at each retail outlet averages 1600 per day. Assume there are 250 days per year. Each unit of product costs 160 dollars, and holding cost per unit of product per year is 16% of the product cost. The fixed cost of each order (administrative plus transportation) is 1200 dollars in the decentralized system. The fixed cost of each order in the centralized system is twice of the decentralized system. Holding cost per unit are the same in the two systems. 1. How much does EACH warehouse need to order individually to minimize the total cost in the DECENTRALIZED system? The potential answers are: A: 3904 units. B: 6124 units. C: 4000 units. D: 7746 units. E: 7906 units. 2. How much should ALL the warehouses order together to minimize the total cost in the CENTRALIZED system?

The potential answers are: A: 19365 units. B: 12344 units. C: 17321 units. D: 12649 units. E: 26833 units.