Haley Photocopying purchases paper from an​ out-of-state vendor. Average weekly demand for paper is


Haley Photocopying purchases paper from an​ out-of-state vendor. Average weekly demand for paper is

180

cartons per week for which Haley pays

​$30

per carton. Inbound shipments from the vendor average

950

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

four

weeks

.

​Further, they will be able to reduce shipments to

200

cartons. Haley believes that they will be able to reduce safety stock to a

4

​-week

The changes decrease​ Haley’s average aggregate inventory level by how many cartons AND HOW MUCH VALUE?

Haley Photocopying purchases paper from an​ out-of-state vendor. Average weekly demand for paper is

Haley Photocopying purchases paper from an​ out-of-state vendor. Average weekly demand for paper is

Haley Photocopying purchases paper from an​ out-of-state vendor. Average weekly demand for paper is

 

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