In recent years, Fun Ltd has been in trouble. Sales of small handheld consoles has declined because of the popularity of smartphones. The company has lost money for three of the last four years, with the last year’s loss being $12,238 on sales of $1,624,354. How do they control the inventory? There are four warehouses. There is a central warehouse which is in the headquarters, and the three regional warehouses. Recently, regional sales managers complain frequently about poor customer service. There are managers reporting that some customer orders go unfilled or are late because of shortages at that regional warehouse.