Question: A current warehouse system has eight warehouses with 3 , 2 5 0 units at each warehouse. a . If the company desires to change

A current warehouse system has eight warehouses with 3,250 units at each warehouse.
a. 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 level, using five warehouses
and the square root rule. Do not round intermediate calculations. Round your answer to the nearest
whole number.
units
b. 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 level, using three
warehouses and the square root rule. Do not round intermediate calculations. Round your answer to
the nearest whole number.
units
c. What is the percentage reduction in system inventory for the two systems above, compared to the
original system? Do not round intermediate calculations. Round your answers to two decimal places.
Enter your answers as positive values.
5 warehouses vs.8 warehouses:
%
3 warehouses vs.8 warehouses:
%
 A current warehouse system has eight warehouses with 3,250 units at

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