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-April 17, 2008 |
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This week's Supply Chain Trivia Question, Only from SCDigest!
Each week, we take the trivia question from our weekly on-line newsletter and post it on our web page. To view past issues of Supply Chain Digest, go to the SCDigest archive. To receive the valuable, complimentary newsletter, subscribe now.
Question:
In classic Inventory Management theory, what is the total increase in inventory for a distribution network of 5 DCs versus serving the market with a single DC?
Answer is below. |
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ANSWER
Inventory with 5 DCs all handling the same volumes would be about 225% of that level in a single DC network. That's just the theoretical starting point - real world could be much different.
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