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 decentralized 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) Nine warehouses

b) Twelve warehouses

c) What is the percentage increase in system inventory for the two systems above, compared to the original system?

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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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