1. Why the safety inventory savings decreases as the correlation coefficients increase?
2. Explain the square-root law. Under what condition is this law valid?
3. Describe how information aggregation can reduce safety stock. How can Amazon use information aggregation?
4. Rank the following according to the benefit they provide if kept in a centralized warehouse rather than in stores.
   1. A high-value fast-moving item
   2. A high-value slow-moving item
   3. A low-value fast-moving item
   4. A low-value slow-moving item
5. Under what circumstances manufacturer driven one-way substitution is most suitable?
6. Think about a situation in which you had to substitute a product with a similar one. Did it impact your shopping experience negatively? Explain the situation and why it did or did not impact your shopping experience.
7. Find at least three examples of postponement in different industries.
8. Considering the echelon inventory, find at least three distinct products on Home Depot website for which it is suitable to hold most of the safety inventory upstream in the supply chain (e.g., at the manufacturer). Also find at least three products for which it is suitable to hold most of the safety inventory in stores. Make sure you justify your selections in each case. Also include product images, price, store availability, and delivery time if ordered online.
9. Which one is more beneficial for a firm: longer and predictable lead time, or shorter but unpredictable lead time? Justify your selection.