Assuming the demand is $500$ unit per day, and XYZ is considering either using $1$ central warehouse at the factory or $5$ regional warehouses with equal demand of $100$ units per region.

The lead time is as follows:

$2$ days from central warehouse

$3$ days from factory to regional warehouses $(2$ days manufacturing $+1$ day shipping$)$

$$

Assuming safety stock level should be $1$ day demand

$1.$ Question: Calculate Appropriate Stock Level for Regional Warehouse Model