A company operates two identical warehouses, each serving a geographic with the same cycle service level 90%. Demands in

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A Company Operates Two Identical Warehouses Each Serving A Geographic With The Same Cycle Service Level 90 Demands In 1 (48.21 KiB) Viewed 64 times

A company operates two identical warehouses, each serving a geographic with the same cycle service level 90%. Demands in these regions are random and independent of each other. Now the company is considering a consolidation of these two warehouses into one to serve the two regions. The demands in these regions are estimated to remain the same. Order lead times also remain the same. Suppose the consolidated warehouse will carry the same amount of safety stock as previously in two warehouses combined. The cycle service level of the consolidated warehouse will be: a. Cannot be determined b. equal to 90% c. lower than 90% d. higher than 90%