Question: 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

Ruby-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 100 units and is valued at $85 per unit. Inbound shipments from vendor 1 will average 310 units with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipment from vendor 2 will average 480 units with an average lead time of 3 weeks. Ruby-Star operates 52 weeks per year, it carries a 4-week supply of inventory as safety stock and no anticipation inventory. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $ 81,175. (Enter your response as a whole number) b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $ 95,500). (Enter your response as a whole number) kt haring

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!