Johnson Manufacturing Has Decided to Consolidate Its Warehouses and Reduce

Multiple Choice

Johnson Manufacturing has decided to consolidate its warehouses and reduce the number of locations from 12 to four.However,Johnson desires to maintain the same service level in terms of the risks of running out of stock in attempting to meet customer demand.As a result,Johnson can expect that:

A) The time to fill customer orders will decrease.
B) The required safety stock will increase by approximately 73 percent.
C) The required safety stock will decline by approximately 42 percent.
D) The required safety stock will decline by approximately 58 percent.