Question
Suppose we schedule shipments to our customers so that we expect each shipment to wait for two days in finished goods inventory (in essence
Suppose we schedule shipments to our customers so that we expect each shipment to wait for two days in finished goods inventory (in essence we add two days to when we expect to be able to ship). We do this as protection against system variability to ensure a high on-time delivery service. If we ship approximately 2,000 units each day, how many units do we expect to have in finished goods inventory due to allowing this extra time? If the items are valued at $4.50 each, what is the expected value of this inventory?
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Marketing The Core
Authors: Roger A. Kerin, Steven W. Hartley, William Rudelius
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