A distribution center experiences an average weekly demand of 50 units for one of its items. The
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A distribution center experiences an average weekly demand of 50 units for one of its items.
The product is valued at $650 per unit. Inbound shipments from the factory warehouse average 350 units. Average lead time (including ordering delays and transit time) is 2 weeks. The distribution center operates 52 weeks per year; it carries a 1-week supply of inventory as safety stock and no anticipation inventory. What is the value of the average aggregate inventory being held by the distribution center?
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Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
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