1 31 - we know Let us consider the three safty stock of 3 warehouse be SSI, SS2, SS3, theree warehouse and W3 respectively and two warehouse after consolidation be wrz, w23 and respectively. 45 varience (x1+x2) = var (x) + var (x2) + covarian F(x,x) where, XI AND x2 are two warehouse, being consolidated. and Conercelation ( coveerience) /61462 Thus, after consolidation, lets consider the Co-vanane of Consolidated warchous 1 and 2 - Covacience 12, and Covenience 23, Covariene 31, for others respectively. Covariance 12 = Correlation (6,862) 0.8 x 90 5 X 278 = 201,272 Covariance 23 = 0.88 278 365 - 81,176 Covariance 31 = 0.8 x 90 5x 365 = 264, 260 variance (w1, 162) = 6,2 +62 + 2x Covance 12 -1905)2 + (27832 + 2 X (201,272) :1,298,853 thus Std. der for warchery wir a V1298853 - 1139.67 Service level 96% z value 2 1.75 This softy stock for SS12 = 1139. 67 X 1.75 = 1994.43 Simifarely variance (W2, 3) (278 + (36534 27 81,176 = 372, 861 Std dev w 23 = 1372,861 = 610-62 Salty Stock SS23 = 610.62x1-75 & 1068.585 Similarly variance (wi, W3) = 190 53 +(365) + 2x264, 260 = 1480, 770 Std clev W13 = V1480,770 = 1216.87 Salty SFR SS13 - 1216-87 X1.75 - 2 129.52 2 W2 ss2 = SS3 Thus reduction for Salty Stock iqwi and are Consolidated - 1994:43 +1068.585- AS we already know that the Softy story of present warehous are. SSI = 90581:75 - 1583.75 278 1.75 = 486.5 36581-75- 638.75 Thus reduction in Softy Stock if wl and we are Consolidated = 1583.75 +486-5-1994-43 = 75.82 They reduction for w2 and wz 486.5 + 638.75 -1068.585 = 56.665 They reduction you wz and w/ = 638.75 + 1583.75-2129.52 92.98 The largest reduction in softy Stock observed when ws and we are Consolidated 1 31 - we know Let us consider the three safty stock of 3 warehouse be SSI, SS2, SS3, theree warehouse and W3 respectively and two warehouse after consolidation be wrz, w23 and respectively. 45 varience (x1+x2) = var (x) + var (x2) + covarian F(x,x) where, XI AND x2 are two warehouse, being consolidated. and Conercelation ( coveerience) /61462 Thus, after consolidation, lets consider the Co-vanane of Consolidated warchous 1 and 2 - Covacience 12, and Covenience 23, Covariene 31, for others respectively. Covariance 12 = Correlation (6,862) 0.8 x 90 5 X 278 = 201,272 Covariance 23 = 0.88 278 365 - 81,176 Covariance 31 = 0.8 x 90 5x 365 = 264, 260 variance (w1, 162) = 6,2 +62 + 2x Covance 12 -1905)2 + (27832 + 2 X (201,272) :1,298,853 thus Std. der for warchery wir a V1298853 - 1139.67 Service level 96% z value 2 1.75 This softy stock for SS12 = 1139. 67 X 1.75 = 1994.43 Simifarely variance (W2, 3) (278 + (36534 27 81,176 = 372, 861 Std dev w 23 = 1372,861 = 610-62 Salty Stock SS23 = 610.62x1-75 & 1068.585 Similarly variance (wi, W3) = 190 53 +(365) + 2x264, 260 = 1480, 770 Std clev W13 = V1480,770 = 1216.87 Salty SFR SS13 - 1216-87 X1.75 - 2 129.52 2 W2 ss2 = SS3 Thus reduction for Salty Stock iqwi and are Consolidated - 1994:43 +1068.585- AS we already know that the Softy story of present warehous are. SSI = 90581:75 - 1583.75 278 1.75 = 486.5 36581-75- 638.75 Thus reduction in Softy Stock if wl and we are Consolidated = 1583.75 +486-5-1994-43 = 75.82 They reduction for w2 and wz 486.5 + 638.75 -1068.585 = 56.665 They reduction you wz and w/ = 638.75 + 1583.75-2129.52 92.98 The largest reduction in softy Stock observed when ws and we are Consolidated