A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280

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A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280 drills. The wholesaler's average demand is 70 drills a week, and the lead time from the plant is 3 weeks. The wholesaler must pay for the inventory from the moment the plant makes a shipment. If the wholesaler is willing to increase its purchase quantity to 350 units, the plant will give priority to the wholesaler and guarantee a lead time of only 2 weeks. What is the effect on the wholesaler's cycle and pipeline inventories?

Posted Date: May 11, 2024 01:09 AM

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A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280

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