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Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 40 units and is
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 40 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 360 units with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2 will average 450 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $ . (Enter your response as a whole number.)
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