Explain why variability is lower at the supply points

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1. Explain why batching is done in all elements of the replenishment time.

2. What is the true level of shortage? Explain why.

3. Explain why variability is lower at the supply points.

4. Why does introducing the plant warehouse reduces the overall level of inventory? (Long answer but very important. Summary is in the tree diagram)

5. Explain the reasons why regional warehouses do not order every day what was sold that day. Also, explain how to “overrule” those reasons.

Reference no: EM132172770

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