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Late deliveries d. can't be determined Problem 3: Late Deliveries Lead time (days) 14 Price per unit = $125 Net cost per unit = $75
Late deliveries
d. can't be determined Problem 3: Late Deliveries Lead time (days) 14 Price per unit = $125 Net cost per unit = $75 Inventory carrying cost = 30% Cost of capital = 15% Demand per day (units) 2000 In-transit inventory carrying cost = 18% Current Service Level * 50% are on time * 20% are 1 day late * 15% are 3 days late * 10% are 6 days late * 5% are 9 days lateStep by Step Solution
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