(Answered) : Perkins Western Boot Emporium Currently Owns Four Warehouses Houston Seattle Minneapolis S Q32730842

Perkins Western Boot Emporium currently owns four warehouses inHouston, Seattle, Minneapolis and San Diego to store its bootsbefore shipping them out to various retail customers across thewestern and midwestern America. Greg Perkins, the owner, isconsidering a change to two central warehouse in Salt Lake City andKansas City to service all of their retail customers, and itcurious to know the impact this will have on their system inventoryrequirements. Their current average inventory level isapproximately 5,000 boots at each warehouse. He has found that thislevel of stock will result in warehouse stockouts approximately onepercent of the time. Using the square root rule,