Question: If the increase corresponds to a 5 0 % increase, over the last two years, in the number of regions that the DC serves, and

If the increase corresponds to a 50% increase, over the last two years, in the number of regions that the DC serves, and now all regions face independent demands with similar means and similar standard deviations (that is, sales at the old regions have not changed, but the DC now serves 50% more regions than two years ago), should the manager be pleased with the distribution centers safety stock inventory performance, concerned, or neither? Explain your answer.

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