cartons per week for which Haley pays
per carton. Inbound shipments from the vendor average
cartons with an average lead time of
weeks. Haley operates 52 weeks per year; it carries a
supply of inventory as safety stock and no anticipation inventory. The vendor has recently announced that they will be building a facility near Haley Photocopying that will reduce lead time to
Further, they will be able to reduce shipments to
cartons. Haley believes that they will be able to reduce safety stock to a
supply. What impact will these changes make to Haley’s average inventory level and its average aggregate inventory value?
cartons. (Enter your response as a whole number.)
(Enter your response as a whole number.)
Haley Photocopying purchases paper from an out-of-state
vendor. Average weekly demand for paper is 150 cartons per
week for which Haley pays $15 per carton. Inbound shipments
from the vendor average 1000 cartons with an average lead
time of 3 weeks. Haley operates 52 weeks per year; it carries a
4-week supply of inventory as safety stock and no anticipation
inventory. The vendor has recently announced that they will
be building a facility near Haley Photocopying that will reduce
lead time to one week. Further, they will be able to reduce
shipments to 200 cartons. Haley believes that they will be able
to reduce safety stock to a 1-week supply. What impact will
these changes make to Haley’s average inventory level and its
average aggregate inventory value?
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