Question: A. Management has decided to establish three Distribution Centers (DCs) in different regions of the country to save on transportation costs. For one of the

A. Management has decided to establish three

A. Management has decided to establish three Distribution Centers (DCs) in different regions of the country to save on transportation costs. For one of the products, the average weekly demand at each DC will be 80 units. The product is valued at $550 per unit. Average shipment sizes into each DC will be 900 units per trip. The average lead time will be three weeks. Each DC will carry two weeks of supply as safety stock. Anticipation inventory should be negligible. (6 points) 1. How many dollars of cycle inventory will be held at each DC, on the average? 2. How many dollars of safety stock will be held at each DC? 3. How many dollars of pipeline inventory will be in transit for each DC, on average? 4. How much inventory, on the average, will be held at each DC

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

nventory Management Application 1 : Estimating Inventory Levels Management has decided to establish three Distribution Centers ( DC ) in its supply chain, located in different regions of the country,...

Management has decided to establish three Distribution Centers in its supply chain, located in different regions of the country, to save on transportation costs. For one of the products, the average...

write a business analytics report addressing the following questions. 1. What key factors should Summers consider when deciding about optimizing EVT's network of DCs? [10%] 2. What is the total...

Perform SWOT Analysis of Webvan company based on below case study. On January 12, 2001, the Webvan Group was notified that it had 90 days to bring its stock over a dollar for 10 consecutive trading...

On January 12, 2001, the Webvan Group was notified that it had 90 days to bring its stock over a dollar for 10 consecutive trading days to avoid being delisted1from the Nasdaq: it had failed to meet...

Discussion Questions for Crystal View Incorporated Case:(45points)Write-up for Crystal View Inc.should be turned in by the end of October 8(11:59 pm, Oct 8).This is a group exercise. Consider the...

Requirements 1. The report is at least five pages long, and please follow APA formatting. 2. Include your name, section, and student ID on the title page. 3. In the report, you should include the...

Are Motional emfs a Practical Source of Electricity? How fast (in m/s and mph) would a 5.00-cm copper bar have to move at right angles to a 0.650-T magnetic field to generate 1.50 V (the same as a AA...

Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to...

For tax and distribution purposes, cooperatives must first separate Local versus regional sales Member versus non - member business Marketing versus supply activities Cash sales versus credit sales

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...