Question: Based on the gasoline supply chain case study, how much money are the Local Retail Stores paying each year to store the extra fuel? Assume

Based on the gasoline supply chain case study,
Based on the gasoline supply chain case study,
Based on the gasoline supply chain case study,
Based on the gasoline supply chain case study, how much money are the Local Retail Stores paying each year to store the extra fuel? Assume Q is the average daily consumption (55.9 million gallons). Approximately $140,000 O Approximately $1.4 million O Approximately $14 million O Approximately $140 million The customer goes to a local retail store and buys gasoline. The retail store immediately knows the demand and the gasoline is given to the customer. So, there are 0 days needed for the order to get to the retail store and days needed to move the poods It is almost instantaneous At the end of the day the Local Retail shop calculates the daily usage and submit an order to the Regional Distribution Center who will take a day to process the order and then it will take 3 days for the order to make it to the Local Retail Store. Similarly, the Regional Distribution Centers will determine their orders submit it to the Refineries who will take 2 days to process the order and 14 days to ship the gasoline to the Regional Distribution Center Now let's say that the Local Retail Stores decide that they should store more than the average daily demand. So, the Local Retailers store 150% of daily demand or 1.5*55.9. We will round this up to 4 million allons of store the Local Retail Stores Regional Distribution Centers can store up to 150 million gallons If some costs $250 per gallon and the inventory holding cost is 20%

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