a)
Pipeline inventory = Weekly Demand * Lead time = 85* 3 = 255
Value of each DC’s pipeline inventory = 255 * 370 = $94350
b)
Total inventory = Cycle + Safety + pipeline
Cycle inventory = Q/2
Given Q= 350 units
Safety inventory = pipeline inventory = dL = 85*3
No of distribution centers - 5
Total inventory = 5[(350/2) + (3*85) + (3*85)]
Total inventory = 5*685
Total inventory = 3425 units
Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of...
Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a highspeed modem priced at $330 per unit, the average weekly demand at each distribution center is 85 units. Average shipment size to each distribution center is 450 units, and average lead time for delivery is 3 weeks. Each distribution center carries 3 weeks' supply as safety stock but holds no anticipation inventory. a. On average, how...
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