Question 3: A coat manufacturer is considering the possibility of replacing the three retailers with a single large DC (centralized option). Each retailer covers a specific demand following normal distribution in Table 2. They also consider the lead time for replenishment is 2 weeks and the ordering cost is $40. Assume that the demand in the central DC is the sum of the demand across all three areas. The company is targeting a CSL of 0.90. Assume that any pair of outlets' demand is independently correlated (Py = 0), %3D the holding cost h = $0.5 per unit/week Table 2. Demand distribution of three retailers Retailer Mean demand, D (units/week) Std, D R1 70 R2 50 10 R3 80 10 а. Calculate average inventory of each market for the decentralized option? b. Calculate average inventory for the centralized option? с. What are the impacts of centralized options based on average inventory?