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At Buckeye Coffee Distributors ( BCD ) , the annual demand for coffee is 5 0 0 , 0 0 0 bags, the order cost

At Buckeye Coffee Distributors (BCD), the annual demand for coffee is 500,000 bags, the order cost is $250, and the purchase cost is $80 per bag. The cost of carrying inventory is 30% of the item cost. Based on current practice, BCD orders coffee 30 times per year. They distribute their coffee from two facilities, one in Columbus and one in Salt Lake City, and carries about 20.000 bags of coffee on-hand at a given time.

What would the inventory impact be if BCD were to add two additional facilities to their network?


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