Selling unisex as opposed to gender specific diapers is likely to (a) increase inventory levels because of pooling (b) decrease inventory levels because of pooling (c) not exhibit pooling effects on inventory levels (d) exhibit pooling effects on inventory levels as long as demands are normally distributed

Selling unisex as opposed to gender specific diapers is likely to

(a) increase inventory levels because of pooling

(b) decrease inventory levels because of pooling

(c) not exhibit pooling effects on inventory levels

(d) exhibit pooling effects on inventory levels as long as demands are normally distributed

 

Solution

(d) exhibit pooling effects on inventory levels as long as demands are normally distributed

Selling unisex diaper amounts to product pooling. There is hence a decrease in the fluctuations of demand as demands are normally distributed. Hence

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