Changes make to haley average inventory level

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Reference no: EM131773660

Haley Photocopying purchases paper from an out-of-state vendor. Average weekly demand for paper is 160 cartons per week for which Haley pays $5 per carton. Inbound shipments from the vendor average 900 cartons with an average lead time of 2 weeks. Haley operates 52 weeks per year; it carries a 3 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 one week. Further, they will be able to reduce shipments to 300 cartons. Haley believes that they will be able to reduce safety stock to a 1 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 ______ cartons ?(Enter your response as a whole number.)

Reference no: EM131773660

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