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29 January, 09:24

Mary's Flower Boutique needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for the Flower Boutique is 2000 flowers. Flower Boutique can ship the flowers via regular parcel service (3 days transit time), premium parcel service (1 day transit time), or via public carrier (5 days transit time). What is the average annual transportation inventory for each alternative

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  1. 29 January, 09:26
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    average annual transportation inventory for each alternative are 16.4383, 5.4794, 27.3972

    Explanation:

    Given data

    Annual demand A = 2000 flower

    transit time t1 = 3 days

    transit time t2 = 1 day

    transit time t3 = 5 days

    to find out

    What is the average annual transportation inventory for each alternative

    solution

    we will apply here average annual transportation inventory formula that is

    average annual transportation inventory = t * A / 365

    put the value t1, t2 and t3 for annual demand 2000

    so

    average annual transportation inventory = t * A / 365

    average annual transportation inventory = 3 * 2000 / 365 = 16.4383

    and

    average annual transportation inventory = t * A / 365

    average annual transportation inventory = 1 * 2000 / 365 = 5.4794

    and

    average annual transportation inventory = t * A / 365

    average annual transportation inventory = 5 * 2000 / 365 = 27.3972
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