4. SUITABLE FOR FREQUENT RUNNERS WITH EXIBITH
LOW DEMAND VARIATION WITH COV IN RANGE OF 0 TO 2
COV = STDEV / AVERAGE = 100/ 500 = 0.2
SUITABLE FOR HIGH MIX PRODUCT ENVIROMENTS WITH LOW
BATCH QUANTITIES
COV= STDEV / AVERAGE = 250/100 = 2.5
SUITABLE FOR PRODUCT LINES WITH A MIX OF PRODUCTS WITH
EXHIBIT BOTH LOW COV'S AND HIGH COV'S.
INTO THE FAMILY:
LOW COV'S GO UNDER FILL UP (SUPERMARKET)
AND
HIGH COV'S GO INTO SEQUENTIAL (FIFO).