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For the questions below, assume the following: 100,000 active subscribers All subscribers choose the unlimited plan (max 4 items out at a time) All subscribers

For the questions below, assume the following: 100,000 active subscribers All subscribers choose the unlimited plan (max 4 items out at a time) All subscribers receive and return items via mail, and request new item immediately upon notification of Rent the Runway's receiving a returned item. Average shipping time is 2 days each way Rent the Runway ships 15,000 items per day on average from its processing facility/warehouse Total inventory owned by Rent the Runway is 700,000 items (this includes All inventory in the system, not just at RTR warehouse). Answer the following questions: a) How much inventory on average is in transit, with customers, and in the RTR warehouse? b) How long does a customer keep an item on average? c) How long does an item spend in inventory on average in RTR warehouse? d) A newly hired manager is concerned that, without imposing limits on the time a customer could keep an item, the subscription business will never be profitable. The manager proposes offering $10 off the monthly subscription price to any customer who returns all items within 14 days

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