Question: Why is the need for safety stock reduced? A. Because when demand at one site goes up, demand at the other sites tends to go

Why is the need for safety stock reduced?

  • A. Because when demand at one site goes up, demand at the other sites tends to go down.
  • B. Because the chance than demand will be high (or low) at all sites at the same time is small.
  • C. Because when demand at one site goes up, demand at the other sites tends to go up as well.
  • D. Because the standard deviation of the sum is less than the sum of the standard deviations.

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