2. Blatt machinery is a machine manufacturing company, which has long been committed to meeting customer...
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2. Blatt machinery is a machine manufacturing company, which has long been committed to meeting customer needs. To ensure supply, the company has built more than 500 warehouses. But warehouse management costs remain high, at about $20 million a year. Therefore, the company hired a research company to do a detailed investigation report, and the result is: under the current situation, if the reduction of 202 warehouses, the total warehouse management cost will be reduced by $2 million to $3 million, but due to the possible supply shortage, the sales revenue will be reduced by 18%. Question1: If you were the CEO, would you reduce the number of warehouses based on the company's findings? Why is that? (20 points) Question2: If you don't, how do you make decisions? Please write down the detailed analysis process. (20 points) 2. Blatt machinery is a machine manufacturing company, which has long been committed to meeting customer needs. To ensure supply, the company has built more than 500 warehouses. But warehouse management costs remain high, at about $20 million a year. Therefore, the company hired a research company to do a detailed investigation report, and the result is: under the current situation, if the reduction of 202 warehouses, the total warehouse management cost will be reduced by $2 million to $3 million, but due to the possible supply shortage, the sales revenue will be reduced by 18%. Question1: If you were the CEO, would you reduce the number of warehouses based on the company's findings? Why is that? (20 points) Question2: If you don't, how do you make decisions? Please write down the detailed analysis process. (20 points)
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