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In class, we discussed the example of Eastern Electric ( EE ) , a major manufacturer that buys 1 2 0 , 0 0 0
In class, we discussed the example of Eastern Electric EE a major manufacturer that buys motors per year days per year from Westview Motors WM at $motor Each motor averages a weight of lbs per unit. WM has just announced to EE that they will be implementing a temporal consolidation initiative and that, as a result, they will now need two days to ship their orders after they receive the order information from EE In turn, EE has decided that they will now carry safety stocks equivalent to percent of the average demand per motor during replenishment lead time. EE is also considering a new transportation proposal put forth by PM Railroad. According to this proposal, the intransit time is guaranteed to be five days, EE will need to ship at least cwt per load. PM Railroad will charge $cwt in transportation costs between WM and EE FOB destination WM owns the shipments in transit freight prepaid and charged back Based on these conditions:
What is the annual average cycle inventory amount carried by EE
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