i need the answer quickly A factory ships weekly shipments of an item to a distribution center and the averagequantity shipped is 350 units. The weekly ordering rate for this distribution center is50 units for an item. Unit price is $ 650. The period of supply from the factory to thedistribution center is two weeks (2 weeks). The distribution center must pay for thestock from the moment the manufacturer ships the goods. If the distribution centerwants to increase the purchase quantity to 400 units, the factory will give priority tothe distribution center and guarantee it Supply period (one week only).Required: What is the effect on the average cycle inventory and the pipelineinventory of the distribution center? With the necessity to comment on the results.

Introduction: The term Business refers to an exchange of goods and services between the buyer and…

Answered: Required: What is the effect on the…

Required: What is the effect on the average cycle inventory and the pipeline inventory of the distribution center? With the necessity to comment on the results.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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