(Answered) Aggregation of safety inventory reduces the required level

Management Studies

Aggregation of safety inventory reduces the required level of safety inventory for a given level of product availability. State whether the following statements are true or false in this context. Please give a specific explanation in each case.

[a] Detergent is likely to benefit more from aggregating safety inventory than a product like computers.

True / False. Explain.

[b] Having short lead times is more beneficial to an apparel retailer selling online than to an apparel retailer selling through retail stores.

True / False. Explain.

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Operation Management, Management Studies

Category:- Operation Management
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