Question: Consider distribution centers ( DC ) A and B . All else equal, in which of the following scenarios would you expect the benefit of
Consider distribution centers DC A and B All else equal, in which of the following scenarios would you expect the benefit of DC centralization in terms of the absolute magnitude of safety stock reductions to be greatest? Consider distribution centers DC A and B All else equal, in which of the following scenarios would you expect the benefit of DC centralization in terms of the absolute magnitude of safety stock reductions to be greatest?
demand uncertainty is low and the correlation of demand AB is low zero or negative
demand uncertainty is low and the correlation of demand AB is high positive
demand uncertainty is high and the correlation of demand AB is low zero or negative
demand uncertainty is high and the correlation of demand AB is high positive
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