Changes decrease hayley average aggregate inventory level

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Reference no: EM132159498

Hayley photocopying purchases paper form an out-of-state vendor. Average weekly demand for paper is 100 cartons per week for which Hayley pays $30 per carton. Inbound shipments form the vendor average 1,250 cartons with an average lead time of 3 weeks. Hayley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. The vendor has recently announced that they will be buidling a faiclity near Halyer photocopying that will reduce lead time to 2 weeks. Furhter they will be able to reduce shipments to 250 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 levle and its average aggregate inventory value?

The changes decrease Hayley's average aggregate inventory level by cartons (enter your response as a whole number)

The chnages decreases Haley's average aggregate inventory value by $ (enter your resposne as a whoel number)

Reference no: EM132159498

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