Discuss the impact of correlation on demand pooling

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Reference no: EM132093444

1. The effect of demand pooling is the difference in the amount of inventory held between configuration (i) and configuration (ii). Discuss the impact of correlation on demand pooling.

2. Give examples of the following situations: (a) positively correlated demand for a single product at two different stores, (b) positively correlated demand for two different products at a single store, (c) negatively correlated demand for a single product at two different stores, (d) negatively correlated demand for two different products at a single store.

Reference no: EM132093444

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