Summary of text

The analysis concludes that the centralized case includes high risks of providing a poorer customer service because of lead-time and handling goods problems. Merging warehouses includes a risk of depleting the service level due to handling operations in the beginning. On the other hand, the current situation does not include risk to inferior service to customers.

• What are the risks of the centralized case?
• What are the risks of merging warehouses?
• What are the benefits of the current situation?

• The centralized case includes high risks of providing a poorer customer service because of lead-time and handling goods problems.
• Merging warehouses includes a risk of depleting the service level due to handling operations in the beginning.
• The current situation does not include risk to inferior service to customers.