Scenario 9.1Shipments of Product A from a distribution cente…
Scenario 9.1Shipments of Product A from a distribution center to a retailer are made in lots of 350. The retailer’s average demand for Product A is 75 units per week. The lead time from distributor to retailer is 3 weeks. The retailer pays for the shipments when they leave the distributor. The distributor has agreed to reduce the lead time to 2 weeks if the retailer will purchase quantities of 400 per shipment instead of 350 units per shipment.Refer to Scenario 9.1. With the change in purchased quantities, the average cycle inventory will:
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