Answer: The calculation is as follows:
Explanation:
Given that,
Annual demand = 2000 flowers
Regular parcel service = 3 days transit time
Premium parcel service = 1 day transit time
Public carrier = 5 days transit time
(1) Average annual transportation inventory for Regular parcel service:
⇒ [tex]\frac{Annual\ demand\ \times\ Regular\ Service}{365}[/tex]
= [tex]\frac{2000 \times\ 3}{365}[/tex]
= 16.43
(2) Average annual transportation inventory for Premium parcel service:
⇒ [tex]\frac{Annual\ demand\ \times\ Premium\ Service}{365}[/tex]
= [tex]\frac{2000 \times\ 1}{365}[/tex]
= 5.47
(3) Average annual transportation inventory for Public carrier:
⇒ [tex]\frac{Annual\ demand\ \times\ Public\ carrier}{365}[/tex]
= [tex]\frac{2000 \times\ 5}{365}[/tex]
= 27.39
