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Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a highspeed modem priced at $350 per unit, the average weekly demand at each distribution center is 85 units. Average shipment size to each distribution center is 350 units, and average lead time for delivery is 2 weeks. Each distribution center carries 2 weeks' supply as safety stock but holds no anticipation inventory.

a. On average, how many dollars of pipeline inventory will be in transit to each distribution center? $ (Enter your response as an integer.)

b. How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92493861

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