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    Annual Transportation Inventory

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    Could you please help me with this problem:

    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.

    Calculate the average annual transportation inventory when sending the art via transoceanic ship freight service.

    AIT = units

    (Round your answer to 1 decimal place, the tolerance is +/-0.1.)

    Calculate the average annual transportation inventory when sending the art via air freight.

    AIT = units

    (Round your answer to 1 decimal

    Thank you.

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    https://brainmass.com/business/purchases-inventory-and-cogs/annual-transportation-inventory-461121

    Solution Preview

    We have,
    Annual Transportation Inventory, AIT = (t D)/365,
    where t = transit time in days and D = annual demand in units

    1) Now, the ...

    Solution Summary

    This solution illustrates the method of determination of Annual Transportation Inventory. It provides the formulas and solutions to the given problems.

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