Current Conditions

$1.5$ Distribution Centers by each region

$2.$ Truck loading from plants to DCs costs averaged $0\mathrm{.}09$$ per units

$3.$ LTL$($Less than Truck load$)$ from DCs to a customer costs average $0\mathrm{.}1$$ per units

$4.$ replenishment lead time was five days

$5.$ reorder interval of $6$ days

$6.10$ products with high demand have average daily demand;

$35\mathrm{.}48/22\mathrm{.}61/17\mathrm{.}66/11\mathrm{.}81/3\mathrm{.}36($by each DCs$)$ and standard deviation of daily demand; $6\mathrm{.}98/6\mathrm{.}48/5\mathrm{.}26/3\mathrm{.}48/4\mathrm{.}49$

$7.20$ products with middle demand have average daily demand;

$2\mathrm{.}48/4\mathrm{.}15/6\mathrm{.}15/6\mathrm{.}16/7\mathrm{.}49($by each DCs$)$ and standard deviation of daily demand; $3\mathrm{.}16/6\mathrm{.}20/6\mathrm{.}39/6\mathrm{.}76/3\mathrm{.}56$

$8.70$ products with low demand have average daily demand;

$0\mathrm{.}48/0\mathrm{.}73/0\mathrm{.}80/1\mathrm{.}94/2\mathrm{.}54($by each DCs$)$ and standard deviation of daily demand; $1\mathrm{.}98/1\mathrm{.}42/2\mathrm{.}39/3\mathrm{.}76/3\mathrm{.}98$

$9.$ holding cost incurred was $$0\mathrm{.}15$ per unit per day whether the unit was in transit or in storage

$10.$ All DCs carried safety stock to ensure a CSL of $95$ percent

New Conditions

$1.$ Close $5$ distribution centers $($Saving : $$250,000)$ and build new national wide distribution center$($NDC$)($building cost : $$140,000)$

$2.$ Truck loading from plants to DC cost averaged $0\mathrm{.}01$$ per units

$3.$ Outbound transportation cost to customers from DC to $$0\mathrm{.}24$ per units

Question

$1.$ What are the savings that would result from following the task force recommendation and setting up an NDC$?$