Chapter 9 Question 5

A. the average aggregate inventory value of the product if ruby star used vendor 1 exclusively is $_____ (enter your response as a whole number)

B. the average aggregate inventory value of the product if ruby star used vendor 2 exclusively is $______ (enter your response as a whole number)

C. how would your analysis change if average weekly demand increased to 140 units per week?

the average aggregate inventory value of the product if ruby star used vendor 1 exclusively is $_____ (enter your response as a whole number)

the average aggregate inventory value of the product if ruby star used vendor 2 exclusively is $______ (enter your response as a whole number)

Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 100 units and is valued at $65 per unit. Inbound shipments from vendor 1 will average 390 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