Haley Photocopying purchases paper from an​ out-of-state vendor. Average weekly demand for paper is 110 cartons per week for which Haley pays ​$10 per carton. Inbound shipments from the vendor average 800 cartons with an average lead time of 5 weeks. Haley operates 52 weeks per​ year; it carries a 6​-week supply of inventory as safety stock and no anticipation inventory. The vendor has recently announced that they will be building a facility near Haley Photocopying that will reduce lead time to three weeks. ​Further, they will be able to reduce shipments to 100 cartons. Haley believes that they will be able to reduce safety stock to a 3​-week supply. What impact will these changes make to​ Haley's average inventory level and its average aggregate inventory​ value? The changes decrease​ Haley's average aggregate inventory level by nothing cartons. ​(Enter your response as a whole​ number.) The changes decrease​ Haley's average aggregate inventory value by ​$nothing. ​(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
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Haley Photocopying purchases paper from an​ out-of-state vendor. Average weekly demand for paper is
110
cartons per week for which Haley pays
​$10
per carton. Inbound shipments from the vendor average
800
cartons with an average lead time of
5
weeks. Haley operates 52 weeks per​ year; it carries a
6​-week
supply of inventory as safety stock and no anticipation inventory. The vendor has recently announced that they will be building a facility near Haley Photocopying that will reduce lead time to
three
weeks.
​Further, they will be able to reduce shipments to
100
cartons. Haley believes that they will be able to reduce safety stock to a
3​-week
supply. What impact will these changes make to​ Haley's average inventory level and its average aggregate inventory​ value?
The changes decrease​ Haley's average aggregate inventory level by
nothing
cartons. ​(Enter your response as a whole​ number.)
The changes decrease​ Haley's average aggregate inventory value by
​$nothing.
​(Enter your response as a whole​ number.)
 
 
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