Product parameters

Ordering cost 5550 $/order

Holding cost 1.25 $/unit/week
Lead time 2 weeks

Demand
W1 W2 W3 W4
France 33 45 37 38
Italy 26 35 41 40
Poland 44 34 22 55
UK 27 42 35 40
Denmark 32 43 54 40
Total 162 199 189 213

Demand Summary
Standard
Average Coefficient of
Deviation of
Demand Variation
Demand

France 39.667 12.759 0.322

Italy 40.833 12.239 0.300
Poland 47.250 21.171 0.448
UK 48.083 13.222 0.275
Denmark 45.917 11.341 0.247
Centralized Warehouse 221.750 37.519 0.169

Decentralized transportation cost

Warehouse Inbound Outbound
France 12 13
Italy 11.5 13
Poland 11 13
UK 9 13
Denmark 7 13

Centralized outbound cost

Warehouse France Italy Poland UK
France 13 14 14 15
Italy 14 13 8 15
Poland 14 8 13 15
UK 15 15 15 13
Denmark 17 17 16 8
 W5 W6 W7 W8 W9 W10
55 30 18 58 47 37
46 48 55 18 62 44
48 72 62 28 27 95
51 64 70 65 55 43
46 74 40 35 45 38
246 288 245 204 236 257

Denmark
17
17
16
8
13
W11 W12
23 55
30 45
35 45
38 47
48 56
174 248
Inventory portfolio
Average
Safety Stock Reorder Point Order quantity
Inventory
Decentralized France 23.124 102.457 593.498 319.873
Decentralized Italy 22.181 103.848 602.163 323.263
Decentralized Poland 38.370 132.870 647.750 362.245
Decentralized UK 23.963 120.129 653.437 350.681
Decentralized Denmark 20.555 112.388 638.545 339.828
Centralized Warehouse 99.794 543.294 1403.260 801.424

Decentralized transportation cost

Transportation
Inbound cost Outbound cost
cost
Decentralized France $476.000 $515.667 $991.667
Decentralized Italy $469.583 $530.833 $1,000.417
Decentralized Poland $519.750 $614.250 $1,134.000
Decentralized UK $432.750 $625.083 $1,057.833
Decentralized Denmark $321.417 $596.917 $918.333

Centralized transportation cost by cases

Transportation
Possible location Inbound cost Outbound cost
cost
Centralized France $2,661.000 $3,250.667 $5,911.667
Centralized Italy $2,550.125 $2,966.000 $5,516.125
Centralized Poland $2,439.250 $2,952.167 $5,391.417
Centralized UK $1,995.750 $2,908.667 $4,904.417
Centralized Denmark $1,552.250 $3,106.083 $4,658.333

Cost comparision
Inventory Transportation Cost
Possible plan Weekly total cost
cost cost Ranking
Decentralized Warehouse $4,079.483 $5,102.250 $9,181.733 1
Centralized France $1,878.818 $5,911.667 $7,790.485 2
Centralized Italy $1,878.818 $5,516.125 $7,394.943 3
Centralized Poland $1,878.818 $5,391.417 $7,270.235 4
Centralized UK $1,878.818 $4,904.417 $6,783.235 5
Centralized Denmark $1,878.818 $4,658.333 $6,537.152 6
Inventory
Cost
$770.778
$780.430
$857.650
$846.750
$823.875
$1,878.818