Consider a potential warehouse whose independent weekly demand follows a normal distribution with a

mean of $15,000$ and a standard deviation of $3,000.$ Inventory is replenished every $4$ weeks. Annual

inventory holding cost $=$$$\frac{50}{?}$ unit and CSL $=95\%.$ There are two potential warehouse sites whose data are

given below. In the table $x$ means capacity of the warehouse.

a$)(10$ marks$)$ Calculate the safety stock required at each potential warehouse and transport mode.

b$)(50$ marks$)$ Write a model that minimizes the sum of warehouse operating cost, transportation

cost$,$ and inventory holding cost. Both sites may be selected but a single transport mode has to

be selected. Note that demand is a random variable. Make Ekran Resmi hd using $2$ standard

deviations.