Note: (1) Use shipping cost $5,000 each time from Malaysia to DC in St. Louis. (2) Total inventory cost = purchase cost + order cost + holding cost = D*c+ (D/Q*S + (SS+Q/2)*h*c, where Q should be the optimal order quantity if you want to have the minimum total inventory cost. 1. What is the annual inventory cost of the current system in which product is produced, labeled, and packed in Malaysia before being shipped to the DC? An Excel setup format for your reference only. Feel free to use any format you desire. Malaysia Safety Inventory Optimal Order Quantity Total Inventory Cost Computers Printers Scanners Computers Printers Scanners Computers Printers Target Best Buy Scanners Office Max Staples Total Total Inventory Cost in Malaysia: $313,601,938 2. How would the inventory cost change if labeling and packing were moved to the DC? Assuming the demands are independent of each other. [Solution: $311,653,500) Note that (1) the aggregated demand here is not the same as the one in Chapter 11 (different products in one order), since the basic products are identical , only label and package are different. (2) there is additional cost for labelling and packing in DC. 3. How should Penang Electronics set up its production, labeling, and packing processes? Does your answer change if the additional cost of labeling and packaging at the DC is increased to $4 (from the current value of $2)