Question
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 50 units and is valued
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 50 units and is valued at $ 75per unit. Inbound shipments from vendor 1 will average 350 units with an average lead time (including ordering delays and transit time) of 2 weeks. Inbound shipments from vendor 2 will average 500 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a -week supply of inventory as safety stock and no anticipation inventory.
How would your analysis change if average weekly demand increased to
100 units per week?
The average aggregate inventory value of this product if Ruby-Star used vendor 2 exclusively is $
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