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Q14. [1pt] Consider two books sold by Amazon.com, A and B. Book A is shipped to customers from the Delaware warehouse and book B is
Q14. [1pt] Consider two books sold by Amazon.com, A and B. Book A is shipped to customers from the Delaware warehouse and book B is shipped from the Seattle warehouse. Inventories for these books are managed using an order-up-to policy with a target in-stock probability. Currently, the demand correlation between these two books is zero. Suppose the demand correlation between these two books were to increase but the means and standard deviations of demand for the books remain the same. Assume any necessary adjustments are made to the base stock levels so as to maintain the same target in-stock probability. What would happen to each book's average inventory? a) Both A and B's inventory would increase. b) Both A and B's inventory would decrease. c) They would not change. d) A's inventory would decrease and B's inventory would increase. e) A's inventory would increase and B's inventory would decrease. f) It is impossible to tell from the information provided. Q14. [1pt] Consider two books sold by Amazon.com, A and B. Book A is shipped to customers from the Delaware warehouse and book B is shipped from the Seattle warehouse. Inventories for these books are managed using an order-up-to policy with a target in-stock probability. Currently, the demand correlation between these two books is zero. Suppose the demand correlation between these two books were to increase but the means and standard deviations of demand for the books remain the same. Assume any necessary adjustments are made to the base stock levels so as to maintain the same target in-stock probability. What would happen to each book's average inventory? a) Both A and B's inventory would increase. b) Both A and B's inventory would decrease. c) They would not change. d) A's inventory would decrease and B's inventory would increase. e) A's inventory would increase and B's inventory would decrease. f) It is impossible to tell from the information provided
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