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A large Home Depot store sells 100 fence posts on Monday,Tuesday, Wednesday, Thursday, Friday, Saturday and Sunday: 700 aweek every week of the year. Currently

A large Home Depot store sells 100 fence posts on Monday,Tuesday, Wednesday, Thursday, Friday, Saturday and Sunday: 700 aweek every week of the year. Currently to serve this demand(do not consider safety stock) a truck delivers 300 posts on earlyMonday morning and another 400 fence posts on early Thursdaymorning before the store opens. The regional Home Depot Centersends seven trucks twice a week (on Monday and Thursday) to thestore to deliver the fence posts and a lot of other inventory.

It is proposed to change delivery to a truck every day to thestore and this way 100 fence posts a day can be delivered early inthe morning (6am) to the store by a truck.

1. What is Home Depot's reduction in average inventoryof posts carried each night, over the week.

2. What is Home Depot's reductionin annual average inventory carrying costs of posts if it costs $20a year to carry a post in inventory in the store?

3. What is being synchronized in this change inprocess?

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