Reducing the number of warehouses should, according to the square root rule, have what effect on the total inventory in the system?
Question 21 options:
neither decrease nor increase
increase
cannot be determined from the information given
decrease
Expert Answer
Reducing the number of warehouses should, according to the square root rule, have what effect on the total inventory in the system? – decrease
The Square Root Law states that total safety stock can be approximated by multiplying the total inventory by the square root of the number of future warehouse locations divided by the current number.
X2 = (X1) * √ (n2/n1)
n1 = number of
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