What will be impact of this risk pooling strategy on the, Operation Management

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What will be impact of this risk pooling strategy on the

A company distribution network has eight regional warehouses for the US market.The total demand is equally distributed among the eigth warehouses.suppose the company decides to close three warehouses and assign their demands equally to the remaining five warehouses.

a) What will be impact of this risk pooling strategy on the total inventory carried in the supply chain?

b) What are the negative impacts of this risk pooling strategy?

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