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Three warehouses operate at a target service level of 95%. The forecast error of each warehouse: Warehouse A: 100 units Warehouse B: 125 units Warehouse
Three warehouses operate at a target service level of 95%. The forecast error of each warehouse:
Warehouse A: 100 units
Warehouse B: 125 units
Warehouse C: 75 units
If all the safety stock was consolidated to a single location (centralizing), then determine the percentage savings in safety stock. Assume that the mean demand at all warehouses are the same. Round your answer to the nearest whole number.
*** Unfortunately, the answer is NOT 41.07%, so I'm not sure how to solve this problem!! I really need help!! ***
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Strategic Project Management Made Simple
Authors: Terry Schmidt
1st Edition
0470411589, 978-0470411582
