Please read the $$Managing Inventories at ALKO Inc.$$ Case study on page $350-352$ of your course textbook $$Supply Chain Management, Strategy, Planning, and Operation$$ and then answer the following questions $($please feel free to use the Excel spreadsheet available to you as part of this homework assignment$)$

$1.$ What is the total annual inventory and transportation costs of the current distribution system? $(35$ points$)$

$2.$ What are the savings that would result from following the task force recommendation and setting up an NDC$?$ Assume demand across all regions are independent. $(35$ points$)$

$3.$ If the demand across regions is positively correlated, how do you expect your savings to change? What about the negatively correlated scenario? $($No calculation is needed, please just explain and justify your expectations.$)(15$ points$)$

$4.$ Qualitatively suggest other options that Gary Fisher might consider. $($No calculation is needed, please just explain and justify your recommendations$)(15$ points$)$