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 \((A-B)\) is low (zero or negative).
... demand uncertainty is low and the correlation of demand (\( A-B \)) is high (positive).
... demand uncertainty is high and the correlation of demand \((A-B)\) is low (zero or negative).
... demand uncertainty is high and the correlation of demand \((A-B)\) is high (positive).
Consider distribution centers ( DC ) A and B .

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