Consider 2 stores that sell the same product and both use base- stock policy as their inventory policies. Each store faces independent demand. When these 2 stores are operated separately, each of them hold 100 units of products at the beginning of each period (*The replenishment lead time is zero).
1)These 100 units are (there might be multiple correct choices)
a)amount of mean demand
b) the amount of saftey stock
c) the amount of mean demand and saftey stock
D) the base stock level
2)If the 2 stores are consolidated together, a total_______ of products need to be held
200 unitesMore than 200 unites
c. less than 200 unites
Your answer is _____
Please briefly explain your choice in b)