Maggie manages the inventory of printing paper for the Operations Management (OM) group at SLU. Printing paper comes in boxes containing 5 reams of paper with 500 sheets per ream and is ordered from Office Depot at a price of $25 per box, plus shipping. The shipping cost is equal to a fixed fee of $60 per order. Shipping always takes exactly 5 business days. When the order arrives, it is delivered to the central receiving office at SLU and needs to be brought to Maggie's office where it will be stored. The delivery is done by students working at the central receiving office who are paid a fixed fee of $20 for each such delivery job they take. Storing paper in Maggie's office does not directly cost anything; however, she has noticed over the years some unexplained shrinkage in the stock of printing paper boxes, that is, some of the boxes mysteriously "disappear" from her office. She finds that the rate at which boxes "disappear" is proportional to the amount of stock she holds in her office and estimates the associated shrinkage cost at $5 per box in inventory per week. Consumption of paper by staff and faculty members of the OM group is stable and equal to 20 boxes per week (this number includes the boxes which "disappear"). There are no other relevant inventory costs that Maggie can think of. Assume 50 weeks per year and 5 business days per week. Question 15 3 pts (e) Suppose the faculty members in the OM department have decided to invest any working capital the department has into Professor X's new business venture about a smartphone app for encouraging kids to eat fruits and vegetables. This project is guaranteed to generate a return on investment of 20% per year. Should Maggie's order frequency increase or decrease? Explain why. Edit View Insert Format Tools Table 12pt Paragraph B 1 U ART? very AD V | | O words Maggie manages the inventory of printing paper for the Operations Management (OM) group at SLU. Printing paper comes in boxes containing 5 reams of paper with 500 sheets per ream and is ordered from Office Depot at a price of $25 per box, plus shipping. The shipping cost is equal to a fixed fee of $60 per order. Shipping always takes exactly 5 business days. When the order arrives, it is delivered to the central receiving office at SLU and needs to be brought to Maggie's office where it will be stored. The delivery is done by students working at the central receiving office who are paid a fixed fee of $20 for each such delivery job they take. Storing paper in Maggie's office does not directly cost anything; however, she has noticed over the years some unexplained shrinkage in the stock of printing paper boxes, that is, some of the boxes mysteriously "disappear" from her office. She finds that the rate at which boxes "disappear" is proportional to the amount of stock she holds in her office and estimates the associated shrinkage cost at $5 per box in inventory per week. Consumption of paper by staff and faculty members of the OM group is stable and equal to 20 boxes per week (this number includes the boxes which "disappear"). There are no other relevant inventory costs that Maggie can think of. Assume 50 weeks per year and 5 business days per week. Question 15 3 pts (e) Suppose the faculty members in the OM department have decided to invest any working capital the department has into Professor X's new business venture about a smartphone app for encouraging kids to eat fruits and vegetables. This project is guaranteed to generate a return on investment of 20% per year. Should Maggie's order frequency increase or decrease? Explain why. Edit View Insert Format Tools Table 12pt Paragraph B 1 U ART? very AD V | | O words