Daily Demand =275 units SD of Daily Demand =44 units Average inventory units =2,500 units Cost of 1 unit =$100 Carrying Cost (W)=20% Annual Demand (R)=99,000 Units Ordering Cost (A)=$2,525 per order 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 endure 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 inventory should they expect to have afterwards