A company currently maintains 10 warehouses with a stock of 1,000 units per warehouse. If the company centralizes their warehouses and uses 5 warehouses, what is the estimated stock in the proposed system?

Question

Quizplus · Accepted Answer

The total stock in the current system is 10 warehouses x 1,000 units per warehouse = 10,000 units.
If the company centralizes their warehouses and uses only 5 warehouses, the estimated stock would be 5 warehouses x 1,414 units per warehouse (the square root of 10,000 divided by 5) = 7,072 units. Therefore, the answer is B.

A Company Currently Maintains 10 Warehouses with a Stock of 1,000