Question: Question 1 100 pts A large distributor has 9 retail outlets. Currently each outlet manages its ordering independently. Demand at each retail outlet averages 1000

Question 1 100 pts A large distributor has 9

Question 1 100 pts A large distributor has 9 retail outlets. Currently each outlet manages its ordering independently. Demand at each retail outlet averages 1000 per day. Assume there are 250 days per year. Each unit of product costs 120 dollars, and holding cost per unit of product per year is 21% of the product cost. The fixed cost of each order (administrative plus transportation) is 900 dollars in the decentralized system. The fixed cost of each order in the centralized system is twice of the decentralized system. Holding cost per unit are the same in the two systems. 1. How much does EACH warehouse need to order individually to minimize the total cost in the DECENTRALIZED system? The potential answers are: A: 5590 units. B: 4226 units. C: 6124 units. D: 3904 units. E: 3953 units. 2. How much should ALL the warehouses order together to minimize the total cost in the CENTRALIZED system? The potential answers are: A: 21909 units. B: 16000 units. C: 15811 units. D: 17928 units. E: 17321 units. 3. Compute the total ordering and carrying costs of ALL warehouses in the DECENTRALIZED system. The potential answers are: A: 958405 dollars. B: 1763633 dollars. C: 1558846 dollars. D: 226274 dollars. E: 321994 dollars. 4. Compute the total ordering and carrying costs of ALL warehouses in the CENTRALIZED system. The potential answers are: A: 623538 dollars. B: 831384 dollars. C: 451796 dol- lars. D: 262907 dollars. E: 160000 dollars. 5. Compute the flow time in the DECENTRALIZED system. The potential answers are: A: 2.11 days. B: 2.15 days. C: 1.91 days. D: 1.53 days. E: 2.44 days. 6. Compute the flow time in the CENTRALIZED system. The potential answers are: A: 2.5 days. B: 1.98 days. C: 1 days. D: 1.35 days. E: 0.97 days

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