General Risk Pooling Model

Let us now generalize the results of Section 5.3.1 to n identical DCs, such that the annual demand D is split evenly across all the DCs, each with a 

Section 5.3.1, we will just present the final results. 

Since is the average inventory in the supply chain with one central DC, denoted by h SC), we get the key result  

A company s distribution network has 10 regional warehouses for the U.S. market. The customer zones are assigned to the warehouses in such a way that their demands are equal. The company decides to close four warehouses and assign their customer demand equally to the remaining six. 

After closing four warehouses, the supply chain inventory becomes 

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