Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an avera weekly demand of 30 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 300 unit with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor will average 490 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-w- supply of inventory as safety stock and no anticipation inventory. a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $39,000 (Enter your response as a whole number.) b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $39,500. (Enter your response as a whole number.) c. How would your analysis change if average weekly demand increased to 60 units per week? The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $ response as a whole number.) (Enter your

Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an avera weekly demand of 30 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 300 unit with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor will average 490 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-w- supply of inventory as safety stock and no anticipation inventory. a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $39,000 (Enter your response as a whole number.) b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $39,500. (Enter your response as a whole number.) c. How would your analysis change if average weekly demand increased to 60 units per week? The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $ response as a whole number.) (Enter your

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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**Title: Inventory Management Problem for Ruby-Star Incorporated**

Ruby-Star Incorporated is considering two different vendors for one of its top-selling products, which has an average weekly demand of 30 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 300 units with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2 will average 490 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory.

**Questions:**

a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $39,000. *(Enter your response as a whole number.)*

b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $39,500. *(Enter your response as a whole number.)*

c. How would your analysis change if average weekly demand increased to 60 units per week?
- The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $______. *(Enter your response as a whole number.)*

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