Question
A current warehouse system has six warehouses with 5,000 units at each warehouse. If the company desires to change the number of warehouses to become
A current warehouse system has six warehouses with 5,000 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 ten 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 fourteen 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.
10 warehouses vs. 6 warehouses: %
14 warehouses vs. 6 warehouses:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introduction to Operations and Supply Chain Management
Authors: Cecil B. Bozarth, Robert B. Handfield
3rd edition
132747324, 978-0132747325
