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Reorder Point r/ Safety Stock:Suppose you take one large warehouse serving demand in all of the United States for a single product (with standard deviation of daily demand = 20 units) and you replaced it with four similar-sized warehouses (each with standard deviation of daily demand = 10units). Each warehouse independently follows a good reorder point for product replenishment from the supplier with replenishment lead time of4 days. Assuming the parameters such as target in-stock service level probability or critical ratio remain the same, quantify the effect of splitting the large warehouse into four smaller warehouses on the system’s total safety stock. Pick your answer from the following (circle all that apply)and explain your choice: 1.) It doubles 2.) It increases by less than double 3.) It increases by more than double 4.) It is halved. 5.) It decreases 6.) It does not change 7.) Cannot say what will happen

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