Assume the same facts as in Activity 12.4, except that the business wishes to maintain buffer inventories
Question:
Assume the same facts as in Activity 12.4, except that the business wishes to maintain buffer inventories of 300 units. At what level should the business reorder?
Data from Activity 12.4
An electrical wholesaler sells a particular type of light switch. The annual demand for the light switch is 10,400 units and the lead time for orders is four weeks. Demand for the light switch is even throughout the year. At what level of inventories of the light switch should the business reorder, assuming that it is confident of the information given above?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting And Finance For Non Specialists
ISBN: 9781292334691
12th Edition
Authors: Peter Atrill, Eddie McLaney
Question Posted: