Business, 06.06.2020 22:03 joshuafuller763
Haley Photocopying purchases paper from an out-of-state vendor. Average weekly demand for paper is 180 cartons per week for which Haley pays $5 per carton. Inbound shipments from the vendor average 1 comma 250 cartons with an average lead time of 4 weeks. Haley operates 52 weeks per year; it carries a 5-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 two weeks. Further, they will be able to reduce shipments to 450 cartons. Haley believes that they will be able to reduce safety stock to a 2-week supply. What impact will these changes make to Haley's average inventory level and its average aggregate inventory value?
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Haley Photocopying purchases paper from an out-of-state vendor. Average weekly demand for paper is 1...
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