$8.$ Nova Corp. is evaluating various options as part of redesigning its distribution network. One

of the options is to hold inventories in a centralized DC instead of regional DCs$.$ Nova Corp. has two products in its portfolio, A and B which are currently stocked in all five regional

warehouses. Product A is sourced from supplier $1,$ with orders being placed every $2$ days and

the supplier taking $4$ days to replenish, while product B is sourced from supplier $2,$ with orders

being placed each day and being replenished in a day. The replenishment policy and lead times

for both products are unlikely to be different even if the inventory was to be stocked in a central

DC$.$ Product B has more variable demand and in each of the regions, the standard deviation

of daily demand for product B is approximately twice that of product A$.$ If demand across

regions for either part is nearly independent, their procurement costs are not very different,

and customers for both products expect same responsiveness, which of the products is a more

promising candidate for stocking in the central DC$?$

A$.$ Product B

B$.$ Product A

C$.$ Both products are equally promising.

D$.$ Centralizing inventory of either product will not provide any savings in inventory holding costs.