Here are the questions you should answer:
- What are the problems facing SG in 2010?
- How do SG's problems illustrate the relationship between the number of warehouses and inventory levels?
- How would you evaluate the alternatives that are available to SG in terms of the options being able to solve SG's problems?
- What specific actions would you recommend to management?
Note: Your work should include a basic quantitative analysis that shows the overall costs of SG's inventory and a base case for savings based on your recommendations.