We recently had the privilege to work with two Georgia Tech students (Chandreshekar Sundaresan and Seth Webster) on a white paper that explored the relationship between inventory and the number of warehouses in your supply chain.
This paper goes much deeper than the much quoted “square root of N” rule. You will find that the relationship between inventory and warehouses is quite complex. And, in some cases the number of warehouses has no impact on inventory and in other cases, it can have a profound impact.
This paper will help you evaluate your situation and help you consider all the different factors that may impact inventory levels when designing your supply chain.
Click here for a copy of the paper.