Value of Aggregation $($Problem $12\mathrm{.}12)$

Demand per period $($weekly$)$ per location, Di $=300$

Standard deviation of demand, sD $=300$

Ave replenishment lead time, L $($weeks$)=3$

Standard deviation over L$,\backslash$sigma L $($weeks$)=520$

Desired cycle service level, CSL $=0\mathrm{.}95$

Correlation Coefficient, r$=0\mathrm{.}00$

Number of retail outlets $25\mathrm{.}00$

Intermediate Calculation Without Aggregation With Aggregation

Mean Weekly Demand, DC $7500$

Standard Deviation of demand, sDC $1500$

Mean demand during L$,$ DL $=90022500$

SD of demand during L$,\backslash$sigma L $=5204500$

Resulting Safety Inventory Level at Each Retail Outlet

Estimated safety inventory $($units$)=$

# of days demand $=$

Total Safety Inventory Required

Total Safety Inventory Required

Inventory saving from going online $=$