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. 6667
B. 11619
C. 15492
D. 25820

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Answer:

Correct option is C.

15492 is the average ware-house inventory level.

Explanation:

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.

Average warehouse inventory levels =4000*5*(3/5)0.5 =15492

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished.

15492 is the average ware-house inventory level.

Given Information:

  • Inventory per warehouse = 4000 units  
  • No of Warehouse = 5
  • New no of Ware house = 3

 

Average warehouse inventory levels =4000*5*(3/5)0.5 =15492

Hence, Correct option is C.

To know more about inventory levels, refer to the link:

https://brainly.com/question/15076745