Haley Photocopying purchases paper from an out-of-state vendor. Average weekly d
ID: 357758 • Letter: H
Question
Haley Photocopying purchases paper from an out-of-state vendor. Average weekly demand for paper is 130 cartons per week for which Haley pays S30 per carton. Inbound shipments from the vendor average 750 cartons with an average lead time of 3 weeks. Haley cperates 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 building a facility near Haley Pho?ocopying that will reduce lead time to one week. Further, they will be able to reduce shipments to 200 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)Explanation / Answer
Weekly demand d 130 Annual Demand D= 52*d 6760 Price P 30 Order Q 750 Lead time LT 3 weeks Lead time demand LTD 390 SS level SSL 4 Safety stock SS 520 SS=R-LTD Reorder point R 910 Inventory Inv 830 (Q+R)/2 Weekly demand d 130 Annual Demand D= 52*d 6760 Price P 30 Order Q 200 Lead time LT 1 weeks Lead time demand LTD 130 SS level SSL 1 Safety stock SS 130 SS=R-LTD Reorder point R 260 Inventory Inv 230 (Q+R)/2 Change 600 Ans
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.