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Stock Reduction
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?
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