The safety stock increases with the standard deviation

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Reference no: EM132152826

a) In the case of continuos demand, the safety stock increases with the standard deviation, SD, of demand at a constant rate. T/F ?

b) If total demand across 16 nodes is pooled, the square root law would indicate that only 1/8 of the total safety stock is needed at a central location to support the same customer service level. T/F?

c) postponement results in more disaggregate forecasts for end product. T/F?

Reference no: EM132152826

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