Shipments of Product X from a plant to a wholesaler are made in lots of 1500 units each. The wholesaler's average demand for X is 300 units per week. The lead time from the plant to the wholesaler is 3 weeks The wholesaler pays for the shipments when they leave the plant.
If the plant reduces its shipment lot size from 1500 to 1000 units and keeps its 3 week lead time, what is the wholesaler's new total cycle plus pipeline inventories?

Answer rating: 100% (QA)

To calculate the wholesalers new total cycle plus pipeline inventories with the reduced shipment lot ... View the full answer