Currently, a company has 50,000 units of safety stock for a product located in three warehouses. The

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Currently, a company has 50,000 units of safety stock for a product located in three warehouses. The company is contemplating expanding to nine warehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional $600,000 in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs $5, is the expansion to nine warehouses a potentially good idea?
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Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

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