Note: Need help with this urgently. Please show all steps. Consider the following data pertaining to the three warehouses operated by a company:

Warehouse #	Std. deviation of lead time demand
1	845
2	410
3	225

The company considers consolidating any two of its warehouses (i.e., risk pooling). Based on

the information provided above and given that lead time demands between any two

warehouses are correlated at -0.3 (i.e.,12=23=13= -0.3). In which case will the reduction

in safety stocks resulting from warehouse centralization likely be the greatest if we want to

achieve a 97% service level? (Please provide detailed calculation processes)