Explain how a reduction in lead time can help a supply chain reduce its inventory buffer without hurting customer service?(6 marks) Why are Internet retailers often able to provide a variety of different products for sale with less inventory than traditional 'bricks and mortar' retail stores?(4 marks) Explain the concept of replacing inventory by information.(6 marks) Why should a customer be concerned about transit inventory cost, if they pay for the inventory only when the merchandise arrives at their premises?(4 marks) Fine Garments Case: (2 marks) The Fine Garments Company sells fashion clothing. The forecasted annual demand for its premium leather jacket is 1200. The order processing cost per da is $25, and the inventory holding cost is $50/item/year. The company wants to use a reorder point system. It has the order quantity set at 35. To allow for uncertainties in delivery and in customer demand it wishes to hold 4 weeks of demand as safety stock. What should its reorder point be if the delivery lead time is 2 weeks? Hamilton Fabricators Case: (3 marks) Hamilton Fabricators at Te Rapa orders steel plates from the Te Akau steel plant on a regular basis. An investigation revealed the following details: annual demand = 5,000 tons, cost of steel = $2,000/ton, current order size = 500 tons transported by TranzRail, TranzRail transport cost = $100/ton, safety inventory carried = 50% of demand during replenishment lead time, Inventory holding cost = 25% of purchase price per year, replenishment lead time = 5 days. Calculate the transit inventory cost, the safety inventory cost, and the transportation cost on an annual basis