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a. How do demand variability and lead time impact a firm's inventory levels?

b. Consider a firm redesigning its logistics network. What are the advantages to having a small number of centrally located (large) warehouses as opposed to a large number of decentralized (small) warehouses closer to the end customers?

c. "Combining two warehouses into one is most beneficial when the demands at the two warehouses are negatively correlated." True or False? Explain your reasoning.

d. A firm operates both a large national DC and numerous smaller regional warehouses. Which types of products should be stored centrally and which ones regionally?

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