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Determine the average warehouse inventory levels

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A current warehouse system has six warehouses with 3,000 units at each warehouse. If the company desires to change the number of warehouses to become more centralized and keep the same customer service level, determine the average warehouse inventory levels, using the number of warehouses below and the square root rule.

a. Three warehouses

b. One warehouse

c. What is the percentage reduction in system inventory for the two systems above, compared to the original system

Reference no: EM133139448

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