Prince Electronics, a manufacturer of consumer electronic goods, has five distri

Question

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 65 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? $ 45500. (Enter your response as an integer.) b. How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers? units. (Enter your response as an integer)

Explanation / Answer

Pipeline Inventory =DL=dL= (65 Modems)(2 weeks) = 130

Distribution center =dL($350)

(130)($350)=$45,500

Total Inventory = 5(350/2+ 65x2 + 65x2)

= 5(435) = 2175 Units

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