Question: Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 80 units and is valued

Ruby-Star Incorporated is considering twoRuby-Star Incorporated is considering two

Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 80 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 400 units with an average lead time (including ordering delays and transit time) of 3 weeks. Inbound shipments from vendor 2 will average 490 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 $68,000. (Enter your response as a whole number.) B. the average aggregate inventory value of the product if ruby sta 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 sta used vendor 2 exclusively is $ (enter your response as a whole number)

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!