DO NOT USE EXCEL PLEASE!! solve manually.

7) (15 points) Suppose that a company has two of its warehouses that it would like to consolidate into a central warehouse. Three top-selling items stocked in both warehouses are selected for evaluation. From the monthly forecasts of the demand in the two warehouse territories, the following statistics are known: Warehousel Warehouse 2 Monthly Monthly Monthly Standard Monthly Standard Product Demand Deviation Demand Deviation Value Product (units) (units) (units) (units) (S/unit) A 3,000 500 5,000 700 15 B 8,000 250 9,500 335 30 12,500 3,500 15,000 2,500 25 The product order quantities are determined locally at each warehouse using the EOQ formula and are ordered from separate vendors with an order processing cost of $25 per order. Replenishment lead times average three weeks, or 0.75 months, Inventory carrying costs are 2 percent per year. The service level during the order cycle is set at 95 percent. How much inventory can be saved through risk pooling if the inventory is consolidated into a central facility