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Management Studies

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 $320 per unit, the average weekly demand at each distribution center is 75 units. Average shipment size to each distribution center is 450 units and average lead time for delivery is 3 weeks. Each distribution center carries 3 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?

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.:- M92594299

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