1) Risk pooling suggests that demand variability is reduced if one aggregates demand across locations because as demand is aggregated across different locations,it becomes more likely that high demand from one customer will be offset by low demand from another. less holding cost is incured to the holder due to the application of risk pooling the lead time from warehouse to reatialer has decreased 2) Which is not included in a decentralized invemtory system Supplier Retailer Warehouse 3) When demands from markets are negatively correlated the higher the coefficient of variation, the greater the benefit obtained from centralized systems the higher the coefficient of variation, the greater the benefit obtained from decentralized systems the lower the coefficient of variation, the greater the benefit obtained from centralized systems 4) The variability in centralized and decentralized when warehouse directly supply goods to customer are: √n and n respectively n and √n respectively n and 1/√n respectively 5) Increase in holding cost increases risk pooling benefits decreases risk pooling benefits has no effect on risk pooling benefits 6) Compared to decentralized system, at same invenrotry level, risk pooling doesn't get better service level better revenue more holding cost 7) Risk pooling doesn't: considers risk of lead time variability from supplier to warehouse offsets high demand at one location with low demand at other increse sytem responsiveness 8) Drawback of risk pooling is: high system responsiveness low system responsiveness better service level for same inventory 9) "The transportation cost in centralized system is more than decentralized system is less than decentralized system depends on the system conisdered 10) Risk Pooling is more effective when high coefficient of variation of demand very low holding cost fraction small lead time between supplier and retailer
1) Risk pooling suggests that demand variability is reduced if one aggregates demand across locations because
as demand is aggregated across different locations,it becomes more likely that high demand from one customer will be offset by low demand from another.
less holding cost is incured to the holder due to the application of risk pooling
the lead time from warehouse to reatialer has decreased
2) Which is not included in a decentralized invemtory system
Supplier
Retailer
Warehouse
3) When demands from markets are negatively correlated
the higher the coefficient of variation, the greater the benefit obtained from centralized systems
the higher the coefficient of variation, the greater the benefit obtained from decentralized systems
the lower the coefficient of variation, the greater the benefit obtained from centralized systems
4) The variability in centralized and decentralized when warehouse directly supply goods to customer are:
√n and n respectively
n and √n respectively
n and 1/√n respectively
5) Increase in holding cost
increases risk pooling benefits
decreases risk pooling benefits
has no effect on risk pooling benefits
6) Compared to decentralized system, at same invenrotry level, risk pooling doesn't get
better service level
better revenue
more holding cost
7) Risk pooling doesn't:
considers risk of lead time variability from supplier to warehouse
offsets high demand at one location with low demand at other
increse sytem responsiveness
8) Drawback of risk pooling is:
high system responsiveness
low system responsiveness
better service level for same inventory
9) "The transportation cost in centralized system
is more than decentralized system
is less than decentralized system
depends on the system conisdered
10) Risk Pooling is more effective when
high coefficient of variation of demand
very low holding cost fraction
small lead time between supplier and retailer
