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A Current Warehouse System Has Five Warehouses with 4,000 Units

Question 58

Multiple Choice

A current warehouse system has five warehouses with 4,000 units at each warehouse.The company desires to change to three warehouses to become more centralized and keep the same customer service levels.Determine the average warehouse inventory levels, using the square root rule.(Choose the closest answer.)


A) 6,667
B) 11,619
C) 15,492
D) 25,820

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