Carries variety of office-oriented products

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Office Outlet, a small chain of 7 office supply stores, carries a variety of office-oriented products, including paper, printer cartridges, shipping materials, etc. The owner of the chain wants to reduce inventory levels by requiring suppliers to deliver more frequently. One particularly fast-moving product, standard printer paper, is currently delivered to the stores every two weeks (stores operate 7 days a week). Order size varies, but averages 560 boxes (10 reams to a box) to each store. The paper vendor sells the boxes to Office Outlet at $23.00 per box.

1. What is the average level of inventory at a single store? Across the chain?

2. If Office Outlet can negotiate deliveries to occur every other day (would go from 1 delivery to 7 during the 2 week period), what happens to the average inventory level per store and across the chain?

Reference no: EM132255253

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