Question: Please provide an answer to this problem Additional Problem: Three distribution centers (DCs) each face normally distributed demands. with D1 ~ N(180,302). D2 ~ N(l45,202).

Please provide an answer to this problem

Please provide an answer to this problem Additional Problem: Three distribution centers

Additional Problem: Three distribution centers (DCs) each face normally distributed demands. with D1 ~ N(180,302). D2 ~ N(l45,202). and .03 ~ N(90,152). All three DCs have a holding cost of h = 10 and p = 200. and all three follow a periodic-review base-stock policy using their optimal base-stock levels. (a) Calculate the expected cost of the decentralized system (using equation (7.2)). (b) Suppose demands are uncorrelated among the three DCs: ,0}: = p13 = p23 = 0. Calculate the expected cost of the centralized system. (c) Suppose p12 = p13 = p23 = 0.3. Calculate the expected cost of the centralized system. (d) Suppose p12 = 0.3. pm = p23 = 0.3. Calculate the expected cost of the centralized system

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