Question
A current warehouse system has five warehouses with 4,750 units at each warehouse. If the company desires to change the number of warehouses to become
A current warehouse system has five warehouses with 4,750 units at each warehouse.
If the company desires to change the number of warehouses to become more decentralized and keep the same customer service level, determine the average warehouse inventory level, using eight warehouses and the square root rule. Do not round intermediate calculations. Round your answer to the nearest whole number.
____ units
If the company desires to change the number of warehouses to become more decentralized and keep the same customer service level, determine the average warehouse inventory level, using eleven warehouses and the square root rule. Do not round intermediate calculations. Round your answer to the nearest whole number.
_____ units
What is the percentage increase in system inventory for the two systems above, compared to the original system? Do not round intermediate calculations. Round your answers to two decimal places.
8 warehouses vs. 5 warehouses: %
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