Yasuko’s Art Emporium (YAE) ships art from its studiolocated in the Far East to its distribution center located on theWest Coast of the United States. YAE can send the art either viatransoceanic ship freight service (15 days transit) or by air freight(2 days transit time). YAE ships 18,000 pieces of art annually.(a) Calculate the average annual transportation inventorywhen sending the art via transoceanic ship freight service.(b) Calculate the average annual transportation inventorywhen sending the art via air freight.(c) What additional information is needed to compare thetwo alternatives?
Yasuko’s Art Emporium (YAE) ships art from its studiolocated in the Far East to its distribution center located on theWest Coast of the United States. YAE can send the art either viatransoceanic ship freight service (15 days transit) or by air freight(2 days transit time). YAE ships 18,000 pieces of art annually.(a) Calculate the average annual transportation inventorywhen sending the art via transoceanic ship freight service.(b) Calculate the average annual transportation inventorywhen sending the art via air freight.(c) What additional information is needed to compare thetwo alternatives?
Chapter14: Marketing Channels And Supply Chain Management
Section: Chapter Questions
Problem 12DRQ
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Question
Yasuko’s Art Emporium (YAE) ships art from its studio
located in the Far East to its distribution center located on the
West Coast of the United States. YAE can send the art either via
transoceanic ship freight service (15 days transit) or by air freight
(2 days transit time). YAE ships 18,000 pieces of art annually.
(a) Calculate the average annual transportation inventory
when sending the art via transoceanic ship freight service.
(b) Calculate the average annual transportation inventory
when sending the art via air freight.
(c) What additional information is needed to compare the
two alternatives?
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