Background In the 1990s, when Procter & Gamble was examining the supply chain order patterns for one of its best-selling products, Pampers diapers, they discovered an interesting phenomenon. As they expected, the sales at its retail stores fluctuated moderately. However, as they moved further up in the supply chain, they observed greater and greater amplification…
Category: Modeling
The Generalized Product Rule
Crossposted from the LessWrong Imagine we have a company with investment projects A, B, C,….For instance, A might be a new high-speed Internet service, B might be a new advanced computer, C might be a new inventory management software, etc. We are interested in calculating the total return from these investments at the company. This…