Haley Photocopying purchases paper from an out-of-state vendor. Average weekly demand for paper is 130 cartons per week for which Haley pays $25 per carton. Inbound shipments from the vendor average 1,250 cartons with an average lead time of 2 weeks. Haley operates 52 weeks per year; it carries a 3-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 100 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? The changes decrease Haley's average aggregate inventory level by cartons. (Enter your response as a whole number.)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Haley Photocopying purchases paper from an out-of-state vendor. Average weekly demand for paper is 130 cartons per week for which Haley pays $25 per carton. Inbound shipments from the
vendor average 1,250 cartons with an average lead time of 2 weeks. Haley operates 52 weeks per year; it carries a 3-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 100 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?
The changes decrease Haley's average aggregate inventory level by
cartons. (Enter your response as a whole number.)
Transcribed Image Text:Haley Photocopying purchases paper from an out-of-state vendor. Average weekly demand for paper is 130 cartons per week for which Haley pays $25 per carton. Inbound shipments from the vendor average 1,250 cartons with an average lead time of 2 weeks. Haley operates 52 weeks per year; it carries a 3-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 100 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? The changes decrease Haley's average aggregate inventory level by cartons. (Enter your response as a whole number.)
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