The company considers consolidating any two of its warehouses. Based on the information provided above, in which case will the benefit of warehouse centralization likely be greatest?

$12.$ SKU rationalization is another means of risk pooling. When rationalizing the number of SKUs, a firm eliminates one or more SKUs from its portfolio of products. The underlying assumption, of course, is that most or all customers who would have purchased one of the discontinued SKUs will be willing to switch to one of the remaining SKUs. Assuming that all customers are willing to switch, under what critical assumption will SKU rationalization allow the firm to lower its safety stock requirements for a given service level target?