A current warehouse system has six warehouses with 3,000 units at each warehouse. If the company desires
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A current warehouse system has six warehouses with 3,000 units at each warehouse. If the company desires to change the number of warehouses to become more centralized and keep the same customer service level, determine the average warehouse inventory levels, using the number of warehouses below and the square root rule.
a) Three warehouses
b) One warehouse
c) What is the percentage reduction in system inventory for the two systems above, compared to the original system?
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a S2 12728 units total for the 3 w...View the full answer
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Related Book For 
Principles of Supply Chain Management A Balanced Approach
ISBN: 978-1337406499
5th edition
Authors: Joel D. Wisner, Keah Choon Tan, G. Keong Leong
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