Question: 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

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 $65 per unit. Inbound shipments from vendor 1 will average 300 units with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2 will average 520 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.

a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $40950

b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $36400

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.)

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