M.51 A large domestic appliance manufacturer is looking for ways to cut down on inventory costs while maintaining theircustomer service level. They currently hold 118,000units of spare parts inventory across 56small regional warehouses throughout the country. They are now looking at poolingthe inventory into 4largewarehouses and closing down the smaller warehouses.

If they close the regional warehouses, how many units of inventory would they need to carry across the larger warehouses without increasing the risk of stocking out? (wholenumber.)

By what percentage would their inventory decrease by consolidating their inventory from the regional warehouses into the large warehouses? (percentage and wholenumber.)

%