Assignment:
Question 1. It is also claimed that delayed differentiation will reduce the inventory of the generic product (holding the service level, such as the in-stock probability, constant) even if the different product offerings have positively correlated demand (but not perfectly positively correlated). Is this claim correct?
- No, with positive correlation the coefficient of variability of the generic product will not be reduced
- No, with positive correlation the in-stock probability of the generic product will have to be increased.
- No, with positive correlation the expected demand of the generic product will increase.
- Yes, lead time risk pooling is most effective with positively correlated demand.\
- Yes, the standard deviation of total demand Le, the sum of the demands across the product offerings) will be reduced even with positi e corelation assuming the corelations less than one).
Question 2. It is also claimed that delayed differentiation will reduce the inventory of the generic product (holding the service level, such as the in-stock probability, constant) even if the different product offerings have positively correlated demand (but not perfectly positively correlated). is this claim correct?
- No, with positive correlation the coefficient of variability of the generic product will not be reduced.
- No, with positive correlation the in-stock probability of the generic product will have to be increased.
- No, with positive correlation the expected demand of the generic product will increase.
- Yes, lead time risk pooling is most effective with positively correlated demand.
- Yes, the standard de iation of total demand le the sum of the demands across the product offer ngs will be reduced even with positive correlation assur in the correations.