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Take a Test-cristal frandisco - Google Chrome Test aspxtestild 1654126248icenterwinzyes Secure I https//www.mathl MGS 4010-06 Quiz: Chapter 9 Quiz Submt Ou s Question: 1 pt 11 of 14 This Quiz: 14 pts possible Prince Electronkcs, a mandfacturer of consumer electronic gods, has ve distbibusion centers in ditlerent regicns of the country For one of ts products, a highspeed modern priced at S360 per unt the average weekly demand atoach etition center is 75units Average shipment sue to each dsitution cent" is 350unes and average lead time for delvery is 3 weeks Each distribution center caries 3 weeks supply as safety stock but holds no anticpution inventory a.Onaverage how many dolars of pipelea inventory wil be intransit to each disitution center? S(Enteryour response asannege b.How much total inventory cle, safety, and ppeine) does Prince hold for a" Sve dishbdon oentery?unts Enter your response ae a" niger) 0 ue abc ABCEnter your answer in each of the anwer boxes 8 9 0 5 6 7 ENTER L G HJK SHIFT CTRI ALT

Explanation / Answer

1) Pipeline Inventory = Demand * Lead time = 75 units * 3 weeks = 225 units

Value of each distribution center's pipeline inventory = 225 * $360 = $81,000

2) Total inventory = Cycle + Safety + Pipeline

Cycle inventory = Q/2

Given Q = 350 units

Safety inventory = Pipeline inventory = dL = 75 * 3 = 225 units

Number of distribution centers = 5

Total inventory = 5 [(350/2) + (3 * 75) + (3* 75)]

= 5 (175 + 225 + 225) = 5 * 625 = 3125 units

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