Firms reduce work hours by 25%. the number of underemployed workers rises as firms respond to the reduction in demand for their products by reducing the hours of each employed person from 40 to 30 hours per week. % b. the number of unemployed workers rises as firms respond to the reduction in demand for their products by laying off ten previously employed workers. %

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley 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 building a faculty near haley photocopying 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 aggregated inventory value?