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  1. business
  2. general management
  3. consider product a and product b who have independ

Consider product A and product B who have independent demands from one another. Now assume that...

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General Management

Consider product A and product B who have independent demandsfrom one another. Now assume that both demands are normallydistributed with same cost structure. Using the newsvendor model(how to make inventory decisions under uncertainty of demand) - ifthe demand is combined or pooled for products A and B, will theTOTAL inventory increase or decrease vs. making separate decisionsfor the two products? Show work and arguments very carefully. (25marks / 100)

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