An Application of the Impact of Aggregation on Safety Inventory

This video illustrates an example of the impact of aggregation on safety inventory for a clothing company that sells t-shirts in two locations. We aim to analyze and compare the safety stock levels when (1) the inventory is not centralized (2) the inventory is centralized.
It is recommended you to read the problem description at sites.google.c... before you start watching the video.

[@olisaezekiel9646]

thank you. :)

[@williamkenny6383]

So if you also have the std. dev of lead time for example a lead time of 4 weeks with a std. dev. of 2 weeks do you do the same thing? Sqrt(4squared + 2squared) = 4.47 and then use ss=NORMSINV(CSL)*SQRT(4.47)*std. dev. Demand