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

30

units and is valued at

$65

per unit. Inbound shipments from vendor 1 will average

370

units with an average lead time (including ordering delays and transit time) of

4

weeks. Inbound shipments from vendor 2 will average

550

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.

Part 2

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

$enter your response here.

(Enter your response as a whole

number.)