Prince Electronics, a manufacturer of consumer elec- tronic goods, has five distribution centers in different regions of the country. For one of its products, a high- speed modem priced at $350 per unit, the average weekly demand at each distribution center is 75 units. Average shipment size to each distribution center is 400 units, and average lead time for delivery is 2 weeks. Each distribu- tion 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? b. How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers?

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2. Prince Electronics, a manufacturer of consumer elec-
tronic goods, has five distribution centers in different
regions of the country. For one of its products, a high-
speed modem priced at $350 per unit, the average weekly
demand at each distribution center is 75 units. Average
shipment size to each distribution center is 400 units, and
average lead time for delivery is 2 weeks. Each distribu-
tion 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?
b. How much total inventory (cycle, safety, and pipeline)
does Prince hold for all five distribution centers?
Transcribed Image Text:2. Prince Electronics, a manufacturer of consumer elec- tronic goods, has five distribution centers in different regions of the country. For one of its products, a high- speed modem priced at $350 per unit, the average weekly demand at each distribution center is 75 units. Average shipment size to each distribution center is 400 units, and average lead time for delivery is 2 weeks. Each distribu- tion 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? b. How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers?
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