inv s normL CSL inv s norm k ss D s Impact of Correlation on Value of

Inv s norml csl inv s norm k ss d s impact of

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inv s norm L CSL inv s norm k ss D s
Impact of Correlation on Value of Aggregation Standard deviation of weekly demand, s D = 5; Replenishment, L = 2 weeks; Decentralized CSL = 0.9 12-63
Impact of Correlation on Value of Aggregation Standard deviation of weekly demand, s D = 5; Replenishment, L = 2 weeks; Decentralized CSL = 0.9 Aggregate = 0 Standard deviation of weekly demand at central outlet, 12-64 10 5 4 C D s
Impact of Correlation on Value of Aggregation Standard deviation of weekly demand, s D = 5; Replenishment, L = 2 weeks; Decentralized CSL = 0.9 Aggregate = 0 Standard deviation of weekly demand at central outlet, 12-65 10 5 4 C D s 12 . 18 10 2 ) 9 . 0 ( . . ) 9 . 0 ( . . inv s norm L inv s norm ss C D s
Impact of Correlation on Value of Aggregation Disaggregate Safety Inventory Aggregate Safety Inventory 0 36.24 18.12 0.2 36.24 22.92 0.4 36.24 26.88 0.6 36.24 30.32 0.8 36.24 33.41 1.0 36.24 36.24 12-66
Impact of Correlation on Value of Aggregation Two possible disadvantages to aggregation 1. Increase in response time to customer order 2. Increase in transportation cost to customer 12-67

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