Question # 1 (, Revisit Walkart.com (11+ 4+ 3+ 2) Walkart.com (WKM), a leading eRetailer in India, meets the demand of many online consumers from its four distribution centers (Bangalore (south side), Delhi (north side), Hyderabad, Chennai). The country is divided into two demand zones (north and south) for the sake of convenience. At present, the WKM keeps the inventory of one of the products named "Plastic Super Bucket" at Bangalore distribution center. The product is sourced from bucket manufacturer located in Delhi. The management feels that in order to meet consumer delivery within the promised time, WKM should maintain the cycle service level of 98.98 %. Presently, it cost the Bangalore distribution center on an average Rs12 for transporting each "Plastic Super Bucket" to the consumer demand location. The demand and procurement details of each of the zones are given below with other relevant details Average demand of "Plastic Super Bucket" for South zone = 1000 units per week Average demand of "Plastic Super Bucket" for North zone = 2000 units per week Standard Deviation of demand for "Plastic Super Bucket" for South zone = 40 units per week Standard Deviation of demand for "Plastic Super Bucket" for North zone = 30 units per week Lead time for procurement = 3 weeks Standard Deviation of lead time for procurement = 2.1 weeks The holding cost (include interest, storage, inspection, utilities and warehousing cost) is 20% of price per unit per year The cost (landed price) of "Plastic Super Bucket" = Rs 200 per unit. The Selling price of "Plastic Super Bucket" = Rs 230 per unit. The cost of generating an order for procurement: Rs 200 Assume, 1 year = 52 week & 1 week = 7 days a) Develop the cost-effective inventory policy (Q, R) for the described item. Kindly use the following table for entering important and relevant parameters / variables for an inventory policy for WKM. (If your answer is not the integer number, kindly put the answer with accuracy of two digits after the decimal point e.g. 12.34) (11 marks)Details of inventory parameters Answer "indicate, units or in rupees) Demand Details (in units) H Demand Sd deviation of demand Variation of demand during lead time Inventory Parameter (in units) EOQ ROP Safety stock Cost Ordering cost Holding cost Safety stock cost Transportation cost Total cost to WKM