3. How do SC's problem illustrate the relationship between number of warehouses and inventory levels? SG's inventory management problem illustrates the direct relationship between service level targets affecting inventory levels and the number of warehouses within the network and are calculated as follow: 8 Warehouse 2 Warehouses Griffin Beaker Griffin Beaker Unit cost 3.96 4.56 Unit cost 3.96 4.56 Unit price 8.8 9.5 Unit price 8.8 9.5 Average bi-weekly demand 54.2 130.4 Average bi-weekly demand 216.7 65.2 Average Lead time(weeks) 1 1 Average Lead time(weeks) 1 1 Standard deviation 21.4 10.9 Standard deviation 38.3 19.5 CSL 0.99 0.99 CSL 0.99 0.99 Review interval (weeks) 2 2 Review interval (weeks) 2 2 Total time period (T+L) 3 3 Mean demand per week Std deviation per period Mean demand for 3 weeks Std deviation during 3 weeks 27.1 65.2 15.13 7.707 81.3 195.6 26.21 13.35 Total time period (T+L) Mean demand per week Std deviation per period Mean demand for 3 weeks Std deviation during 3 weeks 3 3 108.4 32.6 27.08 325.1 97.8 46.91 23.88 13.79 OUL per warehouse Safety stock per warehouse 142.3 226.7 60.97 31.06 OUL per warehouse Safety stock per warehouse 434.2 153.4 109.1 55.56 OUL for 8 warehouses 1138 1813 Safety stock for 8 warehouses 487.8 248.4 736.22879 868.3 306.7 111.1 329.36551 OUL for 2 warehouses Safety stock for 2 warehouses 218.2