A Furniture Manufacturer Presently Owns a Total of Four Warehouses

Multiple Choice

A furniture manufacturer presently owns a total of four warehouses in the following cities Sacramento,Phoenix,Cincinnati,and Atlanta.The average inventory levels for the four warehouses are 8000 units,10,000 units,10,000 units,and 8000 units,respectively.They plan on moving all of their inventory to one warehouse in Memphis.Using the square root rule,what will be the required average inventory level at the new central Memphis warehouse required to maintain the system's present 98% customer service level? (Choose the closest answer. )

A) 9000
B) 18000
C) 20000
D) 24500