A lee retaller operates both physical stores and a central warehouse for online sales. The management team is trying to determine which prodicts should be carried at individual stores and which should be stocked centrally for the online channel to optimize inventory and Matry costs. The retier currently operates $600$ retal stores across the United States. Two of the products in questiob are regularly

PodixT A: Premium Sneakers

Weety demand at esch store follous a normal distribution with a mean of $150$ units and a standard deviation of $30$ units.

The cast of each jacket is $5120.$

$$The retair uses a continuous review policy with a lead time of $3$ weeks.

Wading cost $520$ percent of the unit cost per year.

$$ Product B: Designer Sneakers

$($at deendat eat store folows $3$ normal distibution with a mean of $5$o units and a standard deviation of $50$ unirs.

Each pair of sneakers costs $$300.$

Holding cost is $20$ percent of the unit cost per year.

$$Lead time is also $3$ weeks.

The retailer is considering whether to keep these products in all stores or consolidate inventory at a central warehouse, where products can be futilled for online sales.

The retalier uses a target cycle service level of $95\%$ for both products and assumes that weekly demand is independent across stores. for which product do you have the highest difference in holding cost per product sold? How much? Detail your computation only considering the safety stock.

for each product, what is the reorder point $($ROP$)$ at an individual store? What is the reorder point at the central$$location$?$