ask for part c. When the tuck capacity is lower than the EOQ, how can it solve

1. StoreChain has 5 stores. Consider the sale of a particular jacket with annual revenues of $1M per store. Jackets sell at a retail price of $325, which represents a mark-up of 30% above what StoreChain pays its manufacturer. Being a profit center each store makes its own inventory decisions and is supplied directly from the manufacturer by truck. A shipment up to a full truck load, which can carry 2,600 jackets, is charged a flat fee of $2,200. The unit holding cost per year is 20% of the product cost. a. What is the economic order quantity of a single store? What is the resulting annual holding and ordering cost at a single store and for the entire chain? b. Suppose now that StoreChain replaces their five brick-and-mortar stores by an Internet store and places the required inventory in one central warehouse. Assuming the same total annual sales volume as for 5 stores and the same shipment fee as before, what is now the economic order quantity of the central warehouse and the annual holding and ordering cost for StoreChain? How does the total cost compare to a.? c. Repeat your analysis of a. and b., but now assume that the annual jacket revenue per store territory is $25 M. How do your answers change