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Daily Demand = 2 7 5 units SD of Daily Demand = 4 4 units Average inventory units = 2 , 5 0 0 units

Daily Demand =275 units
SD of Daily Demand =44 units
Average inventory units =2,500 units
Cost of 1 unit =$100
Average inventory value =$250,000
Cost of Goods sold (per year)=$9,900,000
Average Replenishment Cycle (Lead time)=12 days
SD of Replenishment Cycle =2 days
(Working) Days per year =360 days
Current number of warehouses =16
What is the number of inventory turns?
How much safety stock should the company hold if it wants to ensure a 99% service level?
If the company wants to close 12 of their warehouses, how much inventory should they expect to have afterwards?
If the company is considering adding 4 warehouses to their existing 16, how much
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