Write a 2 page essay on ISOM 201 Excel assignment.
The means are however different among the retailers and means that the standard deviation is not a god measure for variability. The universal measure, coefficient of variation, which does not depend on units, is therefore suitable (109).
Based on the coefficient of variation, the demand is more volatile for retailer D and least volatile for retailer B. Retailer A experiences the second highest level of volatility and retailer C follows.
From the results, and using either the standard deviation or coefficient of variation because of equivalent means, combining retailer B and retailer D, reduces the variability from 69.9 percent to 64.75 percent. The other combinations increase variability of D.
Postponement tactic allows Benetton to meet uncertain demand of each color by reducing the level of uncertainty. By waiting until demand arises in a season, the company operates under certainty. Production is also done on demand and therefore to meet customers’ needs at a low inventory level.
With high level of uncertainty, the postponement strategy reduces volatility to establish accuracy in production volumes. This ensures reliable and valid data and the eliminated error, due to variation, in the production volumes, ensures accurate