expected average inventory is: $2,492,748

3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Warehouse 1 2 3 4 5 6 7 CHAUFFRAPPANNANE 8 9 10 11. 12 13 14 15 16 17 18 19 20 21 22 23 24 Totals VOLUNTEERS APPLE GROWERS INC. Average Warehouse Sales $21,136,032 $16,174,988 $78,559,012 $17,102,486 $78,226,672 $40,884,400 $43,105,917 $47,136,632 $24,745,328 $57,789,509 $16,483,970 $26,368,290 $6,812,207 $28,368,270 $28,356,369 $62,697,015 $47,412,142 $25,832,337 $75,266,622 $16,403,349 $2,586,217 $44,503,623 $22,617,380 $4,230,491 $832,799,258 Average Inventory Level $3,217,790 $2,196,364 $26,510,027 $2,085,246 $26,443,489 $5,293,539 $6,542,079 $8,722,640 $2,641,138 $12,103,076 $1,991,016 $2,719,330 $1,241,921 $3,473,799 $4,166,288 $13,449,058 $7,412,573 $3,599,421 $23,523,846 $2,009,402 $504,355 $6,580,183 $3,001,390 $796,669 $170,224,639 Turnover Ratio 6.57 7.36 2.96 8.20 2.96 7.72 6.59 5.40 9.37 4.77 8.28 9.70 5.49 8.17 6.81 4.66 6.40 7.18 3.20 8.16 5.13 6.76 7.54 5.31 D. AR D 3 4 b 6 23 24 Totals Average Turnover 7 18 19 50 51 52 53 54 55 56 67 Part A Part B $4,230,491 $832,799,258 Warehouse 13, 21, & 24 Total Sales for Warehouses 13, 21, 24? Avg Inventory (actual)? Expected Average Inventory (regression)? Expected Average Inventory (Sq Root Law)? Warehouse 19 Total Sales for Warehouse 19? Avg Inventory (actual)? Avg Expected Inventory (regression)? Allocate #19 Inventory to New Warehouse New Warehouse 19a (40 %)? New Warehouse 19b (60%)? Total? Expected Average Inventory (Sq Root Law)? $796,669 $170,224,639 Before Consolidation $13,628,915 $2,542,945 Before Expansion $75,266,622 $23,523,846 $3.525.278 5.31 6.45 After Consolidation $13,628,915 $359,890 $1,796,133,65 After Expansion: Sales fter Expansion: Exp Avg Inv $30,106,649 $45,159,973 $75,266,622 $9,409,538 $14.114,308 $23,523,846 3. (15 points) Based on your calculations in Part A, answer the following questions: a. Why were Warehouses 13, 21, and 24 selected for consolidation? b. Should Warehouse 8 have been included in the consolidation? Why or why not? Is the average inventory level after consolidation what you would expect to see from consolidation? c. d. Which estimate of the average inventory level, the regression model or the Square Root Law, would be a better predictor for the impact of centralization for this network? Why? e. How does a centralized network with fewer warehouses impact both customer service and inventory carrying costs for the supply chain