Question: There are N locations at which an organization faces demand for an item. The demand for the item is uncertain and hence the organization needs

There are N locations at which an organization faces demand for an item. The demand for the item is uncertain and hence the organization needs to carry safety stock. If it were to make the choice between centralized storage of the item and localized storage of the item in each of the location, which alternative will result in lower investment in inventory? (Hint: Assume that all locations have the same mean and standard deviation for demand)

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