Question: Ruby - Star Incorporated is considering two different vendors for one of its top - selling products which has an average weekly demand of 6

Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 60 units and is valued at $50 per unit. Inbound shipments from
vendor 1 will average 380 units with an average lead time (including ordering delays and transit time) of 3 weeks. Inbound shipments from vendor 2 will average 470 units with an average lead time
of 2 weeks. Ruby-Star operates 52 weeks per year; it carries a 3-week supply of inventory as safety stock and no anticipation inventory.
a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $27,500.(Enter your response as a whole number.)
b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $26,750.(Enter your response as a whole number.)
c. How would your analysis change if average weekly demand increased to 120 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.)
 Ruby-Star Incorporated is considering two different vendors for one of its

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!