Way Cheap has 16 warehouses, 12 have stock inventory of 50,000 and 4 have stock inventory of 100,000. a. What is their current total safety stock, and what will be their new required safety stock if they reduce to a total of 9 warehouses? b. If instead of 9, they drastically decreased from 16 to 4 warehouses, what would be their new safety stock level? c. As a supply chain consultant, what would you counsel Way-Cheap are potential downsides of drastic warehouse downsizing, to be contrasted against the benefit from decreased safety stock requirements?
Way Cheap has 16 warehouses, 12 have stock inventory of 50,000 and 4 have stock inventory of 100,000. a. What is their current total safety stock, and what will be their new required safety stock if they reduce to a total of 9 warehouses? b. If instead of 9, they drastically decreased from 16 to 4 warehouses, what would be their new safety stock level? c. As a supply chain consultant, what would you counsel Way-Cheap are potential downsides of drastic warehouse downsizing, to be contrasted against the benefit from decreased safety stock requirements?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Way Cheap has 16 warehouses, 12 have stock inventory of 50,000 and 4 have stock inventory of 100,000.
a. What is their current total safety stock, and what will be their new required safety stock if they reduce to a total of 9 warehouses?
b. If instead of 9, they drastically decreased from 16 to 4 warehouses, what would be their new safety stock level?
c. As a supply chain consultant, what would you counsel Way-Cheap are potential downsides of drastic warehouse downsizing, to be contrasted against the benefit from decreased safety stock requirements?
Plz send answer fast I will upvote
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