Return to the Epson data in Exercise 7. Assume that demand in different countries is not independent.

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Return to the Epson data in Exercise 7.

Assume that demand in different countries is not independent. Demand in any pair of countries is correlated with a correlation coefficient of ρ.

Evaluate the holding cost savings that Epson gains as a result of building a European DC as ρ increases from 0 (independent demand) to 1 (perfectly positively correlated demand) in intervals of 0.2.

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Supply Chain Management

ISBN: 9780132743952

5th Edition

Authors: Sunil Chopra , Peter Meindl

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