If a firm reduces the number of warehouses from two to one and finds that total safety stock levels have not decreased as a result of this warehouse centralization, the most likely explanation is that lead time demands between the two warehouses were perfectly negatively correlated.
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Home » Business » If a firm reduces the number of warehouses from two to one and finds that total safety stock levels have not decreased as a result of this warehouse centralization, the most likely explanation is that lead time demands between the two warehouses