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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