Question: 4 . For this question, assume that the demand for product B across the MA and NJ locations are negatively correlated with correlation coefficient of
For this question, assume that the demand for product B across the MA and NJ locations are negatively correlated with correlation coefficient of And answer the following questions:
a If we centralize the warehouses for product B what is the average inventory of product B at the centralized warehouse? points
b How much inventory reduction we get by having a centralized warehouse for product B points
c Compare your answer in Part bQuestion with your answer in part cQuestion and briefly explain the intuition for your results.
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