Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 6.9, Problem 31P
Summary Introduction

Interpretation:Explain the situation and/or the products which are likely to give best/worst results by being stored centrally.

Concept Introduction:When a company stores all the inventory of one or more products at one place, this is called centralized inventory. All retail stores are supplied from this central store only, irrespective of the number of retail stores being large or small.

This is akin to a single echelon inventory system. This also adds to risk pooling.

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