Asked by
laklynn carpenter
on Nov 30, 2024Verified
Aggregation reduces the standard deviation of demand
A) only if demand across the regions being aggregated is perfectly positively correlated.
B) only if demand across the regions being aggregated is not perfectly positively correlated.
C) even if demand across the regions being aggregated is not perfectly positively correlated.
D) whenever demand across the regions being aggregated is not perfectly uncorrelated.
Standard Deviation
A statistic that measures the dispersion or spread of a set of data points relative to its mean, indicating how much variation exists from the average.
Demand Aggregation
Combining demand from different sources to gain efficiencies in supply chain management, such as bulk purchasing or centralized distribution.
Regions
Geographically defined areas characterized by certain distinguishing features, which can be natural, social, economic, or political.
- Understand the positive outcomes of employing inventory aggregation tactics and their effects on handling inventory.
Verified Answer
LJ
Learning Objectives
- Understand the positive outcomes of employing inventory aggregation tactics and their effects on handling inventory.